Goldman Sachs said deposits have started to move out of U.S. banks and towards money markets funds, as investors seek the safety in Treasury securities amid worries about stresses in the banking sector.
Retail money market funds have seen large and accelerating inflows over the last week, Goldman said in a note on Thursday, likely suggesting some migration away from deposits.
Following the collapse of SVB Financial Group and Signature Bank, U.S. regional bank stocks have had a bruising last few days, as investors worried about possible deposit outflows causing capital issues at other regional banks. The banks had a day's respite on Wednesday when investors hunted for bargains, but selling resumed on Thursday, led by an over 30% slide in shares of First Republic BankMoney markets appear to have continued functioning fairly well in recent days, and facilities such as the Federal Home Loan Banks lending channel and the Bank Term Funding Program should help maintain "healthy" market functioning even if financing needs spike, Goldman notes.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Goldman Sachs bought SVB's bond portfolio, lender saysTroubled lender SVB Financial Group said on Tuesday Goldman Sachs Group Inc had bought its bond portfolio before federal regulators took the bank into receivership.
Les mer »
SVB says Goldman Sachs was the buyer of portfolio it booked losses onSVB Financial Group said on Tuesday that Goldman Sachs Group Inc was the acquirer of a bond portfolio on which it booked a $1.8 billion loss, a transaction that set in motion the failure of SVB.
Les mer »
Goldman Sachs bought SVB bonds whose $1.8B loss set off its collapseGoldman Sachs bought the SVB bonds whose $1.8 billion loss set off the startup lender's meltdown
Les mer »
Goldman Sachs May Be Getting a $100 Million Payout Over the Silicon Valley Bank CollapseThe financial fallout from Silicon Valley Bank's failure continues, and Goldman Sachs might be along for the ride.
Les mer »
Goldman Sachs cuts U.S. GDP forecast after banking crisisGoldman Sachs on Wednesday lowered its forecast for fourth-quarter U.S. gross domestic product (GDP) growth, citing risks to the lending environment as smaller banks pull back on loans to preserve liquidity in the face of a banking crisis.
Les mer »
Analysis: For Goldman Sachs, SVB's botched stock sale had a silver liningAs SVB Financial Group wrestled with a capital shortfall and the prospect of a downgrade to its credit rating last week, it went to Goldman Sachs Group Inc and worked out an unusual two-part plan, according to people familiar with the discussions.
Les mer »