Shares of regional US banks fell on Tuesday with investors seemingly not convinced that the sale of First Republic Bank (NYSE:FRC)'s assets to JPMorgan over the weekend is enough to stabilize the troubled sector.
JPMorgan agreed to purchase First Republic’s deposits in a bid to restore stability to the ailing sector after alternative negotiations for a rescue package failed.
JPMorgan CEO Jamie Dimon went as far as to declare the US banking crisis as “over” on Monday following the bank’s takeover of First Republic.
But investors don't seem so sure this is the case, with regional banking stocks taking a hit on Tuesday as a result.
Leading the declines were PacWest Bancorp and Western Alliance Bancorporation, which had shed 28% and 21% respectively in the early afternoon.
Zions Bancorporation was down 13% and Comerica (NYSE:CMA) Incorporated had fallen 12.3%, while Signature Bank shed 12% and KeyCorp (NYSE:KEY) was down 10.1%.
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