Another weekend banking crisis? Top US financial regulators gather for a private impromptu meeting

United States Treasury Secretary, Janet Yellen, has called for an impromptu meeting with top financial regulators, with reports of the gathering being airtight as no one from the public will attend.

The meeting takes place amidst the growing turbulence in the US banking sector. Reportedly, Yellen wants regulators to address market concerns, as well as that of depositors, with the Financial Stability Oversight Council (FSOC) coordinating the forum. Members of the FSOC in attendance include leaders of the Federal Reserve and those from the FDIC. Several other regulatory agencies are also present.

Addressing market concerns amid burgeoning turmoil in the banking sector

News of the meeting came in a statement without indicating the possible cause. Nevertheless, the meeting is expected to be directly connected to the banks that shut down over the past weeks, including Silicon Valley Bank (SVB), Signature Bank, and the near-collapse of Credit Suisse.

The actions of the Fed and the FDIC have been put under the microscope recently after they decided to protect depositors exposed to the SVB collapse. Accordingly, the meeting could also provide an avenue for the top financial authorities to advance their efforts in addressing the growing panic within the banking sector.

Notably, the unscheduled meeting comes only days after the FOMC meeting, where the Fed opted for more interest rate hikes. The decision has become a hot topic, drawing criticism as market players remain concerned about the country's banking sector. Presumably, this concern will be addressed in the impromptu meeting.

Another banking crisis brewing?

However, the meeting's timing is rather suspicious given the recent trend where banking crises hit towards the weekend. According to some, such timing is ideal as it gives the market adequate time to digest the news and recover before business opens on Monday.

The development comes hours after revelations that First Republic Bank shares whiplashed investors. The San Francisco-based institution is a commercial bank and provider of wealth management services. Reportedly, the bank is down 90% in a month and still on its lows with no ability to bounce.

Jim Cramer has further invigorated the chatter, saying, "Deutsche Bank (DB) is very profitable and doing well." Historically, when Cramer says go right, the safest way to go is left. This has been proven multiple times in his Bitcoin and market predictions in general. Based on reports, DB is recording what appears to be the biggest jump in credit default swaps in the bank's history.

Nevertheless, given the recent activities, there is already speculation about what will happen next, and this may be the beginning of an eventful weekend.