Finance
Regional Bank Woes Didn’t End With First Republic Rescue
“Public confidence in the banking system works best when you don’t have to think about it,” says one analyst.
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For all of a Monday morning, markets and the banking industry breathed a sigh of relief. And then everyone started worrying again.
Within hours of JPMorgan Chase & Co. announcing that it was taking over the failed First Republic Bank on May 1, the KBW index of regional banks resumed its long slide. The next day was even worse: The index dropped 5.5%, the biggest one-day loss since March 13, the Monday after Silicon Valley Bank collapsed. Several bank stocks fell more than 10%, some by 20% or more.