US Banking Crisis Worsens With Half Of America’s Banks On the Verge Of Failure

The recent sharp decline in shares of major U.S. regional banks has sparked fears of another banking crisis. The collapse of First Republic Bank, the largest U.S. bank failure since 2008, has sent shockwaves through the financial sector, prompting experts to warn that a “confidence crisis” could happen to any bank in the country. Investors have reacted quickly to the news, with shares of PacWest Bancorp, Western Alliance Bank, and KeyCorp plummeting by as much as 30%, 21%, and 10%, respectively. The KBW Regional Banking Index has also taken a hit, falling by 5.2% and its lowest since December 2020.