Short-sellers circle US regional banks as oil slide
New York
SOME US regional banks have benefited in a big way from the energy-related lending growth, but the recent slide in oil prices has raised the spectre of persistently low oil prices hobbling loan growth at these banks. As a result, a number of these banks have caught the eye of short-sellers who are betting on the stocks taking a hit in coming days.
The recent drop in global crude oil prices has raised fears about potential production cuts in US shale plays and several Wall Street analysts are taking a more cautious stance on energy lending growth at these banks. For Texas and Oklahoma-based banks, including BOK Financial, Cullen/Frost Bankers, Prosperity Bancshares and Comerica, oil and gas production loans are an important part of their portfolios.
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