The devaluation of bond holdings mirrors the pain point that triggered the 2023 regional banking crisis when institutions were forced to sell assets at a loss. Analysts warn that the current bank selloff could be a leading indicator of a broader financial crisis, noting that the KBW Nasdaq Bank Index historically peaked 4 to 8 months before the S&P 500 during the market crashes of 2000, 2008, and 2020.
Tuesday, October 20, 2026
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5 of 10 Largest US Banks Enter Bear Market as BofA Losses Top $100B
US Markets6 days ago
The KBW Nasdaq Bank Index fell to its lowest level since May on Oct 14 after dropping 15.6% from its peak. Half of the 10 largest lenders in the US have officially entered bear market territory, with shares of Capital One (-25%), Goldman Sachs (-24%), Morgan Stanley (-24%), Bank of America (-23.5%), and Wells Fargo (-20.1%) each falling at least 20%. This decline comes as unrealized paper losses on the bond portfolio of Bank of America surpassed $100 billion, fueled by soaring bond yields.
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