Fraud Scandals at Regional Banks Spark Global Market Jitters as Gold Hits Record High
Zions Bancorporation shares plunged 13% on Oct. 16, 2025, after disclosing a $50 million loan loss tied to alleged fraud, triggering a selloff in U.S. regional bank stocks. The KBW Regional Banking Index dropped about 5–6%, erasing over $100 billion in market value and dragging major indexes lower. Gold prices hit a record above $4,378 per ounce as investors sought safety.