The Financial Sector (NYSEARCA: XLF) sent a ripple of fear through the broad market as concerns over loose lending practices resurfaced, but this is not the time to sell bank stocks. The news, while concerning, does not signal an imminent meltdown of the regional banking sector; it is more of a one-off event tied to a single bank that has already been accounted for.
Zions Bancorp is the culprit, revealing a $60 million provision and a $50 million write-down to be reflected in the earnings report.
