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Western Alliance and PacWest Bancorp led gains, up 13.4% and
12.3%, respectively, while Zion Bancorp, Keycorp, First Horizon
Corp, Comerica Inc and PNC Financial rose between 2.5% and 6.6%.
Wall Street executives and bank analysts have urged regulators
to provide greater protection for bank deposits and consider
other backstops, arguing only a strong intervention could stop
the banking crisis as First Republic Bank became the third major
lender to have failed since March.
The KBW Regional Banking Index has plunged about 31% this year
as the sector grapples with deepening investor concerns with
billions in market value wiped in recent weeks. The index has
declined 12.1% so far this month.
"You clearly have a situation whereby the market is probing the
weakest links after Silvergate, Silicon Valley Bank and First
Republic," said Russ Mould, investment director at stockbroker
AJ Bell.
PacWest, whose shares have plummeted 86% this year, said late on
Wednesday it was in talks with potential partners and investors
as it weighs strategic options.
Meanwhile, Canada's Toronto-Dominion Bank Group on Thursday
called off its $13.4 billion takeover of First Horizon, citing
uncertainty over when the deal would be approved by regulators.
Shares of the bank plunged to close down 33%.
Western Alliance shares pared losses after plummeting nearly 60%
following a Financial Times report that the lender was exploring
strategic options, including a potential sale of all or part of
its business. The bank denied the FT report.
(Reporting by Manya Saini in Bengaluru; additional reporting by
Amruta Khandekar; Editing by Vinay Dwivedi)
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