(Reuters) – Shares of major U.S. regional banks fell further on Tuesday in the aftermath of the collapse of First Republic Bank, the largest U.S. bank failure since the 2008 financial crisis.
The sell-off pushed the KBW Regional Banking Index 5.2% down to its lowest since November 2020.
JPMorgan Chase & Co on Monday bought a majority of First Republic Bank’s assets.
Here is what analysts are saying about the sell-off in regional banks:
JAKE DOLLARHIDE, CHIEF EXECUTIVE OFFICER OF LONGBOW ASSET MANAGEMENT
“If a ‘confidence crisis’ can happen to First Republic, it can happen to any bank in this country.”
“First Republic bank failure means unfortunately that the other ‘so called’ troubled regional banks should probably continue to sleep with one eye open.”
TERRY McEVOY, BANKING ANALYST AT STEPHENS INC
“It’s a continuation of fears that were ongoing from yesterday. Debt ceiling fears is also impacting markets overall today.”
(Reporting by Jaiveer Singh Shekhawat, Niket Nishant and Medha Singh in Bengaluru; Editing by Shinjini Ganguli)
