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Banking stocks across the globe sold off on Friday, as fears about bad U.S. loans spilled over into equity markets beyond the United States.
U.S. stock markets were rattled on Thursday amid mounting concerns about poor lending practices, after lenders Zions and Western Alliance disclosed bad loans.
Banking stocks were hit hard, with positive earnings reports in the sector unable to offset the apprehension. The concern builds on pre-existing unease over lending following the bankruptcy of two autos-related firms this year, which prompted a call from JP Morgan boss Jamie Dimon that “when you see one cockroach, there are probably more.”
In pre-market trade Friday, shares of major U.S. lenders faltered. JP Morgan
