SALT LAKE CITY — Shares in Utah-based Zions Bancorp plunged Monday as effects from the collapse of two other large banks rippled through the U.S. financial system.
In a personal letter sent to bank customers Monday, Zions Bank President and CEO Scott Anderson acknowledged the failures of Silicon Valley Bank in California and New York City’s Signature Bank “have rattled the markets as well as many people’s nerves,” but he said that Zions remained in strong financial condition, with “access to tens of billions of dollars of readily available liquidity.”
Zions’ share price nonetheless fell 44.1% early Monday as markets opened, declining from $40.35 to $22.55, and trading in its shares, along with those of three other regional banks, was temporarily halted amid the volatility. Zions closed the day at $29.97, down 25.7%.
First Republic Bank, a regional bank based in San Francisco; PacWest Bancorp, headquartered in Beverly Hills; and Regions Financial, headquartered in Alabama, also saw their trading suspended and shares battered as part of a wider negative reaction by jittery investors to the tumult in the financial sector.
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Written by TONY SEMERAD, The Salt Lake Tribune
This article is published through the Utah News Collaborative, a partnership of news organizations in Utah that aims to inform readers across the state.