The slump is driven by a rise in 10 year Treasury yields above 5.2%, which has eroded the value of bank bond portfolios. Bank of America's bond portfolio has surpassed $100B in paper losses, and total unrealized losses across US banks stood at $326.7B at the end of June per FDIC data. These conditions have pushed five of the 10 largest US banks into bear market territory, including Capital One and Goldman Sachs, while the Euro Stoxx Banks index has fallen 6% over the last month.
Tuesday, October 20, 2026
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US Bank Stocks Hit Longest Weekly Losing Streak Since 2008
US Markets4 days ago
Hedge funds are liquidating positions in America's biggest lenders at their fastest rate since March to avoid exposure to falling bond prices. This institutional selloff has put the banking sector on track for six consecutive weekly losses on Friday, the most prolonged downward trend for these equities since the 2008 financial crisis. The KBW Nasdaq Bank Index has dropped 15.6% from its peak and reached a 5 month low as part of the decline.
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