The stability of the financial sector has as much to do with perception as it does about economic realities. Early last month when California-based Silicon Valley Bank and New York’s Signature Bank both failed due to a social media-induced bank run, regional banks across the country saw their stocks plummet.
Following these bank failures, the stock price of Zions bank dropped 44% in one day. However, despite the quick recovery of Utah's oldest bank, the repercussions of March's monetary madness continue to be felt.
Last Friday, one of the country's largest credit reporting agencies, Moody’s, issued downgrades to 11 U.S. banks, including Zions. The rating agency said strains in the way banks are managing their assets and liabilities are becoming “increasingly evident,” and are pressuring profitability.
Zions Bancorporation director of investor relations James Abbott pushed back, saying that Zions had contingency plans in place to navigate the industrywide upheaval that followed the shutdowns that were working “nearly flawlessly” through the second half of March.
.png?width=1200&upscale=true&name=Utah%20Today%20Banner%20(v2).png)
.png?width=750&upscale=true&name=Round%20out%20your%20day%20(v5).png)
