U.S. Bank Stocks Tumble Amid Fitch Downgrade Warning and Regulatory Concerns
Shares of U.S. banks, including Bank of America, Wells Fargo, JPMorgan Chase, Goldman Sachs, Citigroup, and Morgan Stanley, dropped after Fitch Ratings warned of possible downgrades. This comes after Moody's downgraded 10 mid-sized lenders earlier this month. The sector was further affected by concerns over tighter regulation as the Federal Deposit Insurance Corp signaled a proposal to overhaul how regional banks prepare living wills. The S&P 500 banks index hit its lowest point in a month, and Discover Financial Services saw its shares fall after its CEO stepped down and a regulatory review was disclosed.