Wall Street hasn’t covered itself in glory through the banking sector’s turmoil. Analyst ratings and commentary related to two of the banks that collapsed this month haven’t been all that helpful to investors. That isn’t necessarily all analysts’ fault though, and understanding why could help investors in the future.
Most on the Street didn’t appear to see these bank failures coming. Both
(ticker: SIVB)—the parent company of the failed Silicon Valley Bank—and the collapsed Signature Bank (SBNY) had previously been making plenty of money and were expected to be profitable in 2023. In fairness, regulators also failed to predict the current turmoil.