Why BofA, JPMorgan, Goldman Sachs, Goldman Sachs And Other Bank Stocks Are Down In Premarket Friday

Just as sanity was returning in the banking space amid governments’ handholding, the turmoil in the credit default swaps of German banking giant Deutsche Bank AG (NYSE:DB) has reignited contagion risk.

What Happened: The German bank’s credit default swaps, which represent insurance protection for its bondholders against a potential default, spiked 200 basis points, the highest since early 2019, Reuters said, citing data from S&P Market Intelligence.

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The prospect of another banking collapse could spell disaster following three banks going under in the U.S., a big bank being bailed out in Europe and more regional U.S. banks potentially facing issues.

All U.S. big banking stocks and regional banks showed knee-jerk reactions to the predicament facing Deutsche Bank.

According to Benzinga Pro data, in premarket trading:

• JPMorgan Chase & Co. (NYSE:JPM) fell 1.99% to $ 124.31.
• Bank of America Corp. (NYSE:BAC) declined 2.60% to $ 26.27.
• Citigroup (NYSE:C) moved down 2.76% to $ 42.25.
• Morgan Stanley (NYSE:MS) Plunged 1.96% to $ 84.16.
• Goldman Sachs Group Inc. (NYSE:GS) lost 2.08% to $ 308.31.