With the federal-funds rate going to near zero, energy stocks collapsing alongside the price of oil, and stock market volatility roaring, the bank stocks have been crushed.
Two months ago Citigroup (C) – Get Report, Morgan Stanley (MS) – Get Report, Bank of America (BAC) – Get Report, JPMorgan (JPM) – Get Report and Goldman Sachs (GS) – Get Report reported strong earnings. Some went to all-time highs and many traded to 52-week highs.
Then the volatility hit, as investors feared a repeat of 2008. That’s despite the banks being in a much stronger financial position than they were a dozen years ago.