Shares of US banks were under pressure ahead of the opening bell in New York, with First Republic Bank leading the decline, even after federal regulators acted to shore up the banking system following the collapse of Silicon Valley Bank and Signature Bank.
Major banks fell, while regional lenders’ stock was hardest hit. Shares of First Republic Bank fell more than 64 per cent to $29.86 after declining as much as 70 per cent.
Shares of Western Alliance Bancorporation fell over 53 per cent to $22.99, while PacWest Bancorp stock was down almost 38 per cent to $7.75.
Zions Bancorporation and KeyCorp had more modest declines, with shares down 17 per cent and 8 per cent, respectively.
The SPDR S&P Regional Banking exchange traded fund dropped almost 7 per cent.
Shares in the four largest US banks, JPMorgan, Citigroup, Bank of America and Wells Fargo, were down between 1.1 and 3.8 per cent in premarket trading.