Regional Banking Crisis 2.0? SPDR S&P Regional Banking ETFBATS:KRETrading-CapitalKRE fell over 6% today due to mounting concerns about sour loans and weakening credit quality across regional banks. Many regional bank earnings reactions are not supporting positive price action. Loan Quality Fears: Wall Street is increasingly worried about deteriorating credit conditions in regional banks’ loan portfolios. Reports suggest rising delinquencies and potential defaults, especially in commercial real estate and small business lending. Jefferies & Zions Drag: Shares of Jefferies and Zions Bancorporation were among the hardest hit, amplifying pressure on the ETF. Zions, in particular, saw double-digit losses amid speculation about its exposure to risky assets. Tariff-Driven Recession Fears: Broader macro concerns, including recession risks tied to recent tariff policies, are weighing on bank stocks. Tariffs are seen as “unconditionally bad” for financials due to their impact on growth and lending demand.