Regional bank stocks staged their deepest retreat in three years on Monday, reflecting deepening investor concern about the health of the industry following three bank failures in the past week.
The KBW Nasdaq index of commercial banks dropped more than 10%, with large lenders such as Comerica Inc. and Zions Bancorp declining more than 20%. The SPDR S&P Regional Banking ETF dropped more than 15%, putting it on pace for its largest decline since 2008.
Banking is safe, Biden tells US as shares in smaller lenders fall
Shares in regional American lenders tumbled despite an extraordinary bid by regulators to ease pressure on the banking system and prevent contagion following the failures of Silicon Valley Bank and Signature Bank.
President Biden sought to reassure consumers and investors after his administration unveiled an emergency package of measures. “Americans can have confidence that the banking system is safe,” he said at the White House, adding that companies and their employees can “breathe easier”.
"Can you assure Americans that there won't be a ripple effect? Do you expect other banks to fail?"
BIDEN: *shuts door* pic.twitter.com/CNuUhPbJAi
— RNC Research (@RNCResearch) March 13, 2023
