Bank stocks tumble as First Republic deal fails to stem contagion fears
[ad_1]
JPMorgan Chase's move to acquire most of First Republic Bank's assets this week hasn't stemmed investor concerns about the financial prospects for other regional lenders. The stock prices of Comerica, PacWest Bancorp, Western Alliance Bank and Zions Bank shares fell sharply Tuesday as attention shifted to other financial players that could be at risk of the startling bank runs that have taken down First Republic, Silicon Valley Bank and Signature Bank in recent weeks. "Wall Street is quickly hitting the sell button as banking turmoil appears it is not going away anytime soon and is ready to focus on the next weakest link — potentially distressed lenders with tremendous exposure to commercial real estate," Edward Moya, a senior market analyst at Oanda, said in a research note. Shares of Los Angeles-based PacWest, with $44 billon in assets, plunged 28%, while $65 billion Western Alliance tumbled 15%. The KBW...