The Zhitong Finance App learned that the stock price of Capital One Credit (COF.US) closed higher on Tuesday, rebounding strongly from a two-week decline. Previously, Berkshire Hathaway (BRK.A.US), a subsidiary of “stock god” Buffett, revealed that it had bought shares of up to 1 billion US dollars in this bank, which specializes in the credit card business. According to documents submitted to regulators on Monday, Berkshire opened a new stock of First Capital Credit in the first quarter to 9.92 million shares, worth about US$954 million based on the closing price on March 31.

According to information, Capital One Credit, headquartered in McLean, Virginia, used its credit card advertising slogan “What's in your wallet?” Famous for its reputation, the agency also has huge auto loans and commercial banking operations. Peers include American Express (AXP.US) and Bread Financial Holdings Inc (BFH.US).

By the close of the US stock market on Tuesday, Capital One Credit's stock price had risen 2.1% to 90.95 US dollars per share, the highest level since May 1, and once jumped nearly 6% during the intraday period. Since the beginning of March, as the banking crisis hit the stock prices of regional banks in the US hard, the agency's stock prices have fallen by about 17% since March.

After Capital Credit, which specializes in the credit card business, received an investment confidence vote from “stock god” Buffett, the stock prices of some regional banks in the US, such as Alliance Western Bank (WAL.US), where deposit confidence was hit hard after the banking crisis, picked up.

Analysts from Morgan Stanley (Morgan Stanley) said that since the market focuses on deposit outflows rather than deposit costs, the market is selling off US regional bank stocks excessively. The extent of deposit outflows is often a better indicator of a bank's financial stability.

Since regional bank deposits are quite sticky, and the data does not show an acceleration in capital outflows, many Wall Street analysts said that stock prices in these regions are currently very cheap and are expected to rebound in the next few months. Some analysts said, “The recent downward trend in regional bank stocks seems a bit excessive because quarterly deposit outflows up to now are in line with seasonal expectations.”

Bank of America analysts adjusted their rating of Alliance Western Bank (WAL.US), whose stock price has fallen sharply since the banking crisis, from “no rating” to “buy” on the grounds that regional banks have a huge share of insurance deposits and are capable of absorbing deposit outflows with strong profitability.

Analysts said that Alliance West Bank doesn't have much in common with the three banks that have gone out of business in terms of business model and balance sheet characteristics. Since March, Silicon Valley Bank (Silicon Valley Bank), Signature Bank (Signature Bank), and First Republic Bank (First Republic Bank) have successively gone out of business during the US banking crisis.

By the close of the US stock market on Tuesday, Allianz Western Bank's stock price had risen 2.7%. After announcing an increase of 2 billion US dollars in deposits in the second quarter until May 12, the bank's stock price once rose more than 10% after the market. Another company, PacWest Bancorp (PACW.US), whose stock price recently suffered a sharp setback, fell 14.6%, taking back almost all of Monday's intraday gains. However, after the release of Alliance West Bank deposit data, PacWest Bancorp's stock price picked up after the market, rising more than 7% at one point. First Horizon National Bank (FHN.US), whose stock price has repeatedly reached record lows since the banking crisis, rebounded nearly 2% at the close.

The Federal Reserve's highest-ranking regulator told the US Congress that after several banks have recently gone out of business, the Federal Reserve will announce plans to strengthen bank capital requirements this summer and will ensure that regulators are more active in supervising banks. Federal Reserve Vice Chairman Michael Barr (Michael Barr) said that American community banks as a whole are “healthy and resilient,” while the Federal Reserve is carefully considering rule changes for large regional banks.