“Plummeting bank stocks test predictions that worst of the crisis is over”
May 4, 2023
“Federal Reserve Chair Jerome Powell said Wednesday that the seizure of First Republic was “an important step toward drawing a line under” turmoil in the banking system. Within two hours the stock of another troubled regional lender was down more than 50%…
Other regional banks under scrutiny from investors also plunged overnight, including Western Alliance (WAL) in Phoenix and Comerica (CMA) in Dallas. First Horizon (FHN) also plummeted in pre-market trading after Toronto-Dominion Bank called off its deal to acquire the Memphis regional lender because of a lack of clarity around regulatory approvals…
The two names most in focus this week, PacWest and Western Alliance, were among the financial institutions that came under intense scrutiny following the March 10 and March 12 failures of Silicon Valley Bank and Signature Bank...”