US bank stocks plunge as investors grow uneasy about mounting risks

Core Insights - U.S. bank stocks, including Zions Bancorporation, Jefferies, and Western Alliance, experienced significant declines due to investor concerns over risks in the sector linked to auto bankruptcies [1][5] Group 1: Company-Specific Developments - Zions Bancorporation's stock fell 12% after announcing a $50 million loss in Q3 related to two commercial and industrial loans from its California division [2] - Western Alliance's stock dropped nearly 11% following the initiation of a lawsuit alleging fraud against Cantor Group V, LLC [2] - Jefferies' stock plunged 9% after revealing exposure to bankrupt auto parts maker First Brands, with its shares down over 20% since the bankruptcy announcement [3] Group 2: Market Reactions and Analyst Commentary - The regional banking index decreased by 5.8%, and the S&P 500 lost nearly 1%, indicating broader market impacts from the banking sector's issues [5] - Analysts noted that the situation highlighted gaps in lenders' oversight and raised concerns about credit market transparency, drawing parallels to the First Brands collapse [6] - JPMorgan Chase's CEO Jamie Dimon commented on the anxiety in the credit market following the bankruptcies, emphasizing the need for caution [6][7]