Credit Crisis in US Begins with Banks’ Bankruptcy: Morgan Stanley Pvt. Bank Says
TEHRAN (Tasnim) – Highlighting the sharp decrease of lending in US banks, a senior strategist at Morgan Stanley Private Bank said it means the beginning of the credit crisis in this country.
Mike Wilson, the senior strategist of Stock Market of the Bank, warned that bankruptcy and collapse of Silicon Valley Bank (SVB) and banking crisis have caused a significant credit crisis in the United States.
He referred to the statistics, showing that lending standards have become more difficult at financial and credit institutions.
The warning is announced as one month has passed since the pullout of deposits which led to the bankruptcy of two main US banks i.e. Silicon Valley Bank (SVB) and Signature Bank within a few days.
The “First Republic” Bank is the US's third largest bank which was saved by the banks of Wall Street Journal in the form of deposits with the financial aid of $30 billion.
Accordingly, the chief actors came into action as investors feared the “First Republic” Bank would turn into the next bankrupt bank in the United States.
In February, Wilson had predicted that the value of US Stock Market, which had reached the maximum unstable level, could collapse within a few months as much as 26 percent at large.