US Bank Scare Wipes Out $100 Billion: Global Markets Plunge as “Cockroach” Fears Spread
Financial markets were hit by a flash of déjà vu as two U.S. regional banks revealed shock loan problems that sent their stocks into freefall and spooked investors worldwide. On Thursday, Zions Bancorporation of Utah announced it would write off $50 million on two commercial loans and even alleged borrower fraud, while Arizona-based Western Alliance disclosed it is suing to recover about $100 million on a bad loan tied to suspected fraudn-tv.den-tv.de. These seemingly small-scale credit issues – on loans run through a private investment fund – had an outsized impact on market psychology. Shares of Zions plunged 13% and Western Alliance fell 11% by Thursday’s closen-tv.de, their worst one-day drops since the U.S. regional banking turmoil of 2023. “The problems of two US regional banks completely flipped sentiment,” observed Thomas Altmann, a portfolio manager at QC Partners in Frankfurt, noting that “fear of a new crisis is back”n-tv.de.
