Fresh Rout Of US Regional Banks Despite First Republic Deal

Shares of US regional banks suffered deep losses on Wall Street Tuesday, dashing hopes that the resolution of First Republic's woes would end the crisis.

While large banks like Citigroup and Bank of America fell, the ugliest losses came at the same regional banks that have seen pressure since the March demise of Silicon Valley Bank the risks facing the group.

These include Los Angeles-based PacWest Bancorp (-24 percent), Western Alliance Bancorporation (-16 percent) of Phoenix, Zions Bancorporation (-11 percent) of Utah and Cleveland-based KeyCorp (-9 percent).

The declines came on a turbulent day for global markets that saw oil prices slump on recession worries amid growing worries of a US debt default due to a standoff between Democratic President Joe Biden and the Republican-led House of Representatives.