Regional bank stocks, in particular, gained as much as 35% before the bond warnings and downgrades began.
The higher interest rates bond analysts cited hurt profits some, but most banks' net interest income and margins were higher than a year before.
The ratings actions pushed the regional bank stock index 10% lower for the month-long period ending Sept. 8, according to Morningstar (the Moody's bank warning was issued August 7).
By any reckoning, the argument about banks is about two things: Interest rates and real estate, specifically office buildings.
The average regional bank stock rose 8% after earnings, Morgan Stanley said, with banks beating profit forecasts by an average of 5%.
Persons:
Morningstar —, downgrades, Morgan Stanley, Jill Cetina, Cetina, Banks, Goldman Sachs, Jan Hatzius, Scott Rechler, Jeff Greene, Alexander Yokum, Dick Bove, Bove, Yokum
Organizations:
First, JPMorgan, Bloomberg, Getty, Moody's Investors Service, Poor's, Fitch, Morningstar, Federal Reserve, Fedwatch, RXR, Research, Odeon Capital
Locations:
First Republic, Regional, Moody's, U.S