Regional Bank Stocks Plunge as Gloom from First Republic Failure Sinks Markets
A day after U.S. financial regulators ordered First Republic Bank closed and JPMorgan Chase agreed to take it over in a rescue move, other regional bank stocks have plunged.
In early trading on Tuesday, regional bank stock indexes fell sharply amid persistent jitters following Monday’s regulatory decision to seize First Republic and then facilitate its sale to JPMorgan, marking the second-biggest bank failure in U.S. history.
As of 1 p.m. ET, the S&P Regional Banks Select Industry Index was down 7.24 percent, the KBW Nasdaq Regional Banking Index was down 6.22 percent, and the iShares U.S. Regional Banks ETF was down 6.35 percent….