National investment loss lawyers KlaymanToskes reports that investors are facing over $54 billion in losses following the collapse of four U.S. banking institutions since the beginning of this year, including Silicon Valley Bank, Signature Bank, First Republic, and Silvergate Capital Corp.
KlaymanToskes offers recovery options for investors who have suffered losses at the hands of full-service brokerage firms and/or registered brokers/investment advisors. The firm is currently investigating the unsuitable sale of many investment products and potential sales practice violations related to the collapses, including First Republic structured products and Credit Suisse AT1 Bonds, among others.
Affected investors are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options. We do not collect attorney’s fees unless we obtain a financial recovery for you.
Investors in the U.S. have incurred losses totaling over $54 billion due to the collapse of four lenders, including First Republic Bank, which has led to a pile of near-worthless securities, resulting in further turmoil for other banks around the country. Since February 28th 2023, $46.9 billion in market capitalization has been erased, with approximately $7.5 billion lost from bonds and preferred shares, according to a report by Bloomberg.
Currently, the shares of all four banks have a combined value of just $725 million, which is likely to disappear entirely following the resolution of the bank failures. Preferred shareholders and bondholders were excluded from plans to rescue First Republic, Silvergate Capital Corp., Silicon Valley Bank, and Signature Bank. First Republic has $800 million of unsecured bonds outstanding, currently quoted at just one penny on the dollar. According to several credit rating agencies, a default is almost certain to occur.
This serves as a poignant reminder of how swiftly financial institutions can fail, and that they provide little restitution for shareholders or subordinate debt holders, who are placed at the bottom of the queue for recoveries. Postulation about the rest of the financial sector has reverberated across other financial institutions. Shares of PacWest Bancorp plunged close to a record low recently, while Western Alliance Bancorp fell by approximately 15%. Together, the two banks have lost over $5 billion in market value in 2023.
Brokerage firms and their registered brokers and investment advisors have a fiduciary duty to provide their clients with suitable investment recommendations and to ensure that their clients understand the risks associated with their investments.
In cases where a brokerage firm recommends an investment in a financial institution, or any product that is backed by a financial institution, which subsequently collapses, the firm may be liable for failing to conduct adequate due diligence or for misrepresenting the risks associated with the investment. Firms and their financial professionals may be responsible for any investment losses incurred by their customers.
In KlaymanToskes opinion, preferred shareholders and bondholders must take action to recover their losses through a FINRA arbitration claim, as the likelihood of any recovery will be extremely low. Investors’ best opportunity to recover their losses may be through FINRA arbitration against the firms and financial advisors who recommended such investments. Investors should mitigate any further damages by consulting with an experienced securities attorney.
Investors with significant losses should contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options. We do not collect attorney’s fees unless we obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com