The banking crisis that slammed U.S. regional banks has left Wall Street’s most powerful institutions largely unscathed, and the fallout may ultimately benefit the biggest players.
After the sudden implosion of Silicon Valley Bank (SIVB) and Signature Bank (SBNY) rattled markets, the perception that the largest banks are “too big to fail” is seemingly making them more attractive to customers looking for safety.
“I do think that that’s a natural kind of transition, and the bigger banks could be natural beneficiaries,” Michael Arone, chief investment strategist for US SPDR Business at State Street Global Advisors, told Yahoo Finance Live (video above). “There’s a perceived safety around moving those assets. Now, whether it’s real or not, I think we’ll find out. But I do think that there is this perceived safety of moving up in terms of those larger banks and deposits to those larger banks.”
While regional banks such as First Republic (FRC) and PacWest Bancorp (PACW) battle declining…
This article was written by and originally published on finance.yahoo.com