First Republic, PacWest Lead US Bank Rally After SVB Rout
- Moody’s cuts outlook for US banking system to negative
- Recent failure of three banks spurred worries over contagion
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Regional US bank stocks led by First Republic Bank and PacWest Bancorp clawed back some of their steep losses in the wake of Silicon Valley Bank’s collapse.
First Republic closed 27% higher in New York, its biggest single-day gain ever, while PacWest gained a record 34% and Western Alliance Bancorp rose 14%. Meanwhile, Charles Schwab Corp. climbed 9.2% after its CEO said he bought shares. The KBW Bank Index, one of the main gauges for the financial industry, gained 3.2%.