Main Street Banks Are About to Show How Much Risk They Face
- First-quarter earnings loom as pandemic tests capital buffers
- Loans of all kinds imperiled with millions of jobs destroyed
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Executives at regional U.S. banks often say they’re only going to do as well as their clients. That’s now more true than ever.
Investors are focused on which firms are exposed to the wrong industries as the coronavirus pandemic roils the economy, and they plan to scour for clues as the lenders report results in coming weeks. Bank stocks have plunged as the duration and severity of the crisis remain uncertain. The KBW Regional Banking Index tumbled 41% during the first three months of the year, the worst quarter in its history of more than two decades.