Banking Crisis Looms as Stocks Approach Crisis-Era Threshold

The selloff in US bank shares is threatening to push them below a technical threshold that could signal more pain ahead for the broader stock market. With the collapse of First Republic Bank worsening fears about the solvency of regional lenders, investors have pummeled financial stocks, leaving the S&P 500 financials index on the verge of falling back below its 2007 peak. If it were to fall through that barrier now, it would be an ominous signal for the broader stock market, said hedge-fund manager Jim Roppel, founder of Roppel Capital Management.