The stock price of Birmingham-based Regions Financial Corp. dropped another 6.9% on Wednesday as the fallout of two California banks collapsing spread across the banking sector.
California-based Silicon Valley Bank and New York-based Signature Bank collapsed last week after facing bank runs. The two banks are now under the control of federal regulators.
Tougher capital and liquidity requirements are currently under review by the Federal Reserve, as well as steps to beef up annual "stress tests" that assess banks' ability to weather a hypothetical recession, according to a report in the Wall Street Journal.
According to the outlet, the rules could target firms with between $100 billion to $250 billion in assets, which at present escape some of the strictest requirements. There are about two dozen banks within the range, such as Regions. The rules and restrictions currently only apply to the largest Wall Street firms.
Regions stock is currently selling at $17.65 per share after the close of the market on Wednesday. Its stock price is down 25% from a year ago and 10% from five years ago.
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