Bank stocks are reeling again in the wake of this month’s turmoil. They face a long road to win back investors.
The abrupt collapses of Silicon Valley Bank and Signature Bank sparked contagion fears in the sector, helping to pull the KBW Nasdaq Bank Index down 26% in March through Thursday. That is on track to mark the third-worst month on record dating to 1992, according to Dow Jones Market Data.
Meanwhile, UBS Group AG agreed to a hasty purchase of beleaguered rival Credit Suisse Group AG for more than $3 billion, and midsize lender First Republic Bank received an emergency infusion of $30 billion in deposits from its peers.