US financials on the floor

US financials on the floor
Monday’s collapse in US bank stocks led regulators to convene an emergency conference call of the Financial Stability Oversight Council, although they found no sign of systemic funding issues, the FT says. Officials and executives added that repo markets showed little sign of the extreme pressures of 2008 or 2009, with Bank of America – which fell 20.3 per cent – able to roll over commercial paper as usual, the WSJ reports. But nevertheless the biggest one-day drop for banks since April 2009 is setting nerves on edge. AIG’s $10bn lawsuit against BofA over the quality of mortgages will also renew concerns about whether the bank needs more capital, Reuters notes.