Regional Bank Stocks Fall Further. The Turmoil Hasn't Gone Away

Dow Jones2023-05-03

By Brian Swint

Regional bank stocks bounced back on Wednesday after plunging on Tuesday.

Concerns about the health of banks are lingering after First Republic's assets were snapped up by JPMorgan Chase over the weekend. Another Federal Reserve interest-rate increase, which may be delivered Wednesday, as well as the prospect of recession, have clouded the outlook.

Commercial property loans, in which some regional banks specialize, may be a particular worry. Berkshire Hathaway Vice Chairman Charlie Munger said earlier this week that banks are full of bad loans and there are tough times to come as property prices fall.

On Wednesday, shares of Beverly Hills-based PacWest Bancorp (ticker: PACW) rose 8.1% after closing down 28% at $6.50 on Tuesday. Western Alliance Bancorp $(WAL)$ advanced 4.3% after a 15% drop. Comerica $(CMA)$ gained 1.9% after sliding 12% on Tuesday. The stocks had all fallen in the premarket.

"Worries have ratcheted up again that a maelstrom of problems are lurking within regional banks and that there could be another breakage as interest rates are set to be hiked again," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. "There was hardly a pause for breath after the JPMorgan takeover of First Republic Bank."

Write to Brian Swint at brian.swint@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 03, 2023 10:14 ET (14:14 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

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The Turmoil Hasn't Gone Away\n</h2>\n\n<h4 class=\"meta\">\n\n2023-05-03 17:02 北京时间&nbsp;&nbsp;&nbsp;<strong>Dow Jones</strong>\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Brian Swint \n\n\n  Regional bank stocks bounced back on Wednesday after plunging on Tuesday. \n\n\n     Concerns about the health of banks are lingering after First Republic's assets were snapped up by ...</p>\n\n<a href=\"\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PACWL","symbol_name":"PacWest Bancorp","start_time":0,"source_url":"","article_id":"2332994775","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2332994775","pubTimestamp":1683104575,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"By Brian Swint \n\n\n  Regional bank stocks bounced back on Wednesday after plunging on Tuesday. \n\n\n   ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"PACWL":"PacWest Bancorp","CMA":"联信银行","WAL":"阿莱恩斯西部银行"},"translate_title":"地区性银行股进一步下跌。动乱还没有消失","themeId":"84e08b5c51c64465bd21bc23ef21c618","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CMA":0.9,"PACWL":0.9,"WAL":0.9},"content_text":"By Brian Swint \n\n\n  Regional bank stocks bounced back on Wednesday after plunging on Tuesday. \n\n\n     Concerns about the health of banks are lingering after First Republic's assets were snapped up by JPMorgan Chase over the weekend. 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