US regional bank stocks hit by Zions charge-off, fraud allegations

By Manya Saini, Arasu Kannagi Basil and Ateev Bhandari (Reuters) -U.S. regional bank stocks fell on Thursday after Zions Bancorporation disclosed it would take a $50 million loss in the third quarter on two commercial and industrial (C&I) loans from its California division. The disclosure added to growing investor unease about hidden credit stress as lenders navigate elevated interest rates and economic uncertainty. "The optics of a large balance C&I loan to a fraudulent borrower from a bank that specia ...