2023-05-02 15:50:00
Regional bank stocks fell in the US stock market on the 2nd.PacWest Bancorp temporarily drops 42%,Western Alliance Bancorp fell 27% at one point, prompting a sell-off in other bank stocks.
The KBW Bank Index fell 5.6% at one point, its biggest drop since March 13. Wells Fargo, Citigroup, Bank of America (BofA), Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. are also cheap.
Other regional bank stocks also fell, including Zions Bancorp, Comerica, Keycorp, East-West Bancorp and Truist Financial. The KBW regional bank index fell 7% at one point.
First Republic bailout deal fails to signal alarm for U.S. banks
“Wall Street is paranoid regarding which bank needs bailout next, making other regional banks an easy selloff,” said Ed Moya, senior market analyst at Oanda. He said, “JPMorgan’s acquisition of First Republic appears to have calmed the banking sector for just one day. Until there are clear signs that the emergency lending program is no longer needed, regional bank stocks remain vulnerable. It’s an impression,” he said.
“The settlement of the First Republic issue is a good sign, but there is no clear solution to the credibility credibility across regional banks, and more pressure from regulators and the government,” said Bloomberg Intelligence analyst Herman Chan. We may need a holistic approach,” he said.
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Original title:Regional Bank Shares Plunge on Prospect of More Rescues to Come、PacWest, Western Alliance Plunge to Lead Bank Stock Selloff (1)（抜粋）
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