Source: Wall Street News

First Republic Bank's crisis ended with another takeover by J.P. Morgan, but the crisis for regional banks in the US may not be over yet.

Before the market on Thursday, US regional bank stocks once again plummeted. Among them, West Pacific Bank PacWest once fell nearly 50%, Allianz Western Bank once fell more than 24%, and UnionPay and Zion Bank each fell 7%.

Banks represented by PacWest already experienced a sharp decline on Tuesday, and today's resurgence of large-scale sell-offs shows that PacWest is at the center of market panic.

Earlier, Bloomberg reported that the bank was considering strategic options including a sale, and the bank confirmed that several potential investors had already contacted it, but this did not allay people's concerns, and it also triggered a sell-off of other peers' stocks.

Fears about uninsured deposits, concerns about commercial real estate, and upcoming regulation were all listed as possible triggers.

Meanwhile, McGratty, head of research at KBW Bank of America, pointed out that after SVB, Signature, and First Republic went out of business, “the market is looking for the next potential dominoes”:

People are searching for answers, but no one has a good answer.

The situation now feels a lot like March, where we trade stocks with fear and emotion rather than on fundamentals.

Editor/jayden