Bank Shares Walloped by More AI and ‘Cockroach’ Credit Woes (2)

Financial firms ended February where they spent much of the month: enduring another dizzying blow from the threat of artificial intelligence and grappling with signs those cockroaches Jamie Dimon warned about in the world of private credit are starting to scurry.

The combination delivered another bruising selloff in shares of banks and asset managers Friday. The KBW Bank Index slumped 4.9%, dragging the group to levels last seen in early December. It’s worst session since April’s trade turmoil. All 23 members slid at least 1.9%, with Western Alliance Bancorp, Goldman Sachs Group Inc.and Zions Bancorp NA among the ...