Regional Banks Rattle Markets Due to Lending Business
“When you see one cockroach, there are probably more.”
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- Written by Banking Exchange staff
On Thursday afternoon, Zions Bank led regional banks downwards as virtually every stock in the regional banking ETF was lower.
Investment bank Jefferies also continued downward as the market fears grow over bad loans on its balance sheet.
Zions Bancorporation was lower by 11% on Friday morning, and the sector has brought futures down.
Western Alliance added to the anxiety on Thursday by claiming a borrower had committed fraud.
The anxiety about the banking sector and specifically lending started with auto sector-related loans and the bankruptcy of companies such as Tricolor Holdings.
JP Morgan Chase CEO Jamie Dimon said of the bankruptcies, “When you see one cockroach, there are probably more.”
The concern over the health of regional banks this week by Wall Street is a stark contrast to the strong earnings by the nation’s largest global banks.
Tagged under Risk Management; Feature; Feature3; Regional Banks; Small Business;