Denver The relief didn’t last long. Just a day after the bankrupt First Republic Bank was sold in large part to JP Morgan Chase, concerns about America’s regional banks are back in the spotlight. Los Angeles-based Pac West lost 28 percent on Tuesday. The Metropolitan Bank of New York lost 20 percent. The regional banks’ KBW index slipped more than five percent, falling to its lowest level since November 2020.
The sell-off was also fueled by hedge funds betting on falling prices. This is according to a study by Goldman Sachs. “The turbulence in the banking world will probably not disappear any time soon,” warned Ed Moya from the analysis house Oanda. After the First Republic bankruptcy, investors had zeroed in on the “next weak links in the chain”.
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