Turmoil continued to engulf shares in banks as investors rushed to reduce exposure to the banking industry after seeing equity stakes wiped out at Silicon Valley Bank and Signature Bank.
The collapse of SVB Financial Group’s Silicon Valley Bank on Friday and Signature’s seizure by regulators over the weekend sent tremors through the broader banking system. Regional lenders plunged to start the week, with the KBW Regional Banking Index sinking by as much as 12%, its sharpest intraday plunge since March 2020.
—First Republic Bank sank 67% for a record drop
