US bank stocks fall as selloff in Credit Suisse spurs fresh worries in banking industry

As Credit Suisse shares hit a record low on Wednesday, in the United States, regional banks also fell, with First Republic Bank down 18 percent, Western Alliance Bancorp down 7.5 percent, and PacWest Bancorp off around 16 percent.

Big US banks such as JPMorgan Chase & Co, Citigroup, and Bank of America Corp slid by between 1.7 percent and just over 5 percent.

Regulators and financial executives around the world have sought to assuage contagion fears after tech-focused lender Silicon Valley Bank (SVB) and another US bank failed last week, but fears persist.

Credit Suisse shares dropped by as much as 30 percent, leading to a 7 percent fall in the European banking index, while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns.

Europe's bank index has seen more than 120 billion euros evaporate ($127 billion) in value since March 8. Among the biggest decliners on Wednesday were French lenders Societe Generale, down 12 percent, and BNP Paribas, off 9 percent.

The Swiss National Bank declined to comment on Switzerland's second-largest bank after its largest investor said it could not provide Credit Suisse with more financial assistance because of regulatory constraints.

"There has to be some kind of game-changing decisive action to reverse and stabilise the situation," Exane's analysts said.

Credit Suisse had appealed to the Swiss National Bank and Swiss financial watchdog FINMA for a public show of support, the Financial Times reported.