The rescue of First Republic has failed to calm market fears about the integrity of the United States banking system, with regional bank shares plummeting for a second straight day.
US regional banks on Tuesday suffered steep losses after the troubled lender’s sale to JPMorgan Chase failed to assure investors that the banking sector’s woes had passed.
Los Angeles-based PacWest Bancorp saw its share price plunge by nearly 30 percent, while Western Alliance Bank and KeyCorp fell by 21 percent and 10 percent, respectively.
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