Why Are Wells Fargo and Citigroup Falling Today?
The financial sector has been under pressure lately, fueled by the collapse of SVB Financial's Silicon Valley Bank and concerns about overall confidence in the U.S. banking system. While the sector largely rebounded on Tuesday, it is in the red again once again on Wednesday.
Even the big banks are getting hit hard, with Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C) down by more than 4% and 5%, respectively, as of 9:50 a.m. ET.
The biggest reason for today's turbulence in the financial sector is news related to international megabank Credit Suisse, whose largest investor announced it wouldn't be able to provide any further financial assistance after investing billions in the bank's turnaround efforts last year. And this is on the heels of Credit Suisse's Tuesday announcement of accounting weaknesses, the general fears of a surge of withdrawals in the banking sector, and Credit Suisse's already elevated rate of customer withdrawals.
Source Fool.com
