US Regional Banks Remain Under Pressure as First Republic Sinks
- First Republic, Western Alliance among regional firms sinking
- Investors pinpointing potential for additional bank failures
This article is for subscribers only.
The turmoil that’s engulfed bank stocks deepened Monday as investors rushed to reduce exposure to the industry, triggering a cascade of trading halts as multiple lenders suffered record drops.
Regional banks were among the hardest hit as the KBW Regional Banking Index sank 7.7%, its sharpest plunge since June 2020. The rapid selloff came even as the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. said they were introducing a new backstop for banks that would be large enough to protect the entire nation’s deposits.