The sharp 13% selloff in the shares of Zions Bancorp (ZION) seen a few days ago triggered the harsh memories of the Silicon Valley Bank crisis of a couple of years ago. The stupendous rally in AI stocks may have led to a quick forgetting of the contagion fears that the bank's collapse elicited among market participants, but the horrors of the Global Financial Crisis almost two decades prior are still fresh for many.
However, leading broker Baird has put paid to the fears about any ensuing crisis in the regional bank, which came into being after the latter found "apparent misrepresentations and contractual defaults" in two loans given out by the bank's California Bank & Trust division, leading to a $50 million hit in Q3.
