Il est temps de vendre ces trois actions bancaires plus risquées alors que la fraude bancaire continue d’augmenter

While Wall Street investors continue to embrace artificial intelligence (AI), the American banking sector is facing challenging times – and this time, it’s not just the prospect of another bank sale. As banks have steadily recovered since the collapse of California-based Silicon Valley Bank (NASDAQ:SIVB) in March, a series of monetary frauds is now imposing a financial burden on banks and consumers. As an increasing number of regional American banks rapidly adopt digital transformation, consumers and organizations are becoming increasingly concerned about the potential cybersecurity risks posed by these new technologies. Cases of payment and credit card fraud are on the rise. Digital banking continues to gain momentum, as analysts estimate that by 2025, approximately 216.8 million American consumers will rely on digital banking infrastructure. However, while this field is full of opportunities, the Federal Trade Commission (FTC) has reported that consumers lost around $8.8 billion due to financial fraud last year, representing a 30% increase in just one year. Other industry data has shown that consumers are not the only victims of financial cyber fraud. According to forecasts, two-thirds of American organizations will be targeted by payment fraud by 2022. In 2018, financial fraud activity reached its peak, with 82% of surveyed businesses reporting being victims of some form of payment fraud. Financial institutions have experienced a similar increase in fraudulent activities. Last year, major banks saw a staggering 84% increase in check-related fraud. Data published in a report by the Financial Crimes Enforcement Network, a subsidiary of the U.S. Department of the Treasury, indicates that fraudsters are increasingly using social media platforms such as Telegram to target innocent victims. Predictive industry experts estimate that total losses due to card fraud could exceed $165.1 billion over the next decade, as victims from almost all age groups and geographic areas will be exposed to the growing threat of cybercrime. Three riskier banking stocks to sell. The financial constraints caused by the pandemic, the subsequent rise in inflation, the increase in interest rates, and now the collapse of several leading banks have brought some banks to the brink. Furthermore, banks are feeling the odds against them as cybercrime and threats have become a major concern for many financial leaders in recent years. Banks not only face an increase in cybercrime but also the complex networks that registered investment advisors have to deal with, the complex regulations governed by the Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA), and the enforcement of regulations, which can often lead to intrusive federal investigations. « Registered investment advisors (RIA) face a number of costly rules, laws, and regulations. Many of these rules, such as the infamous Rule 10b-5, broadly restrict ‘course of business’ conduct […] as fraud or deceit upon any person when an adviser or finance professional engages in securities transactions. It can be extremely broad and often allows the SEC to have jurisdiction over conduct that was unimaginable by the legislators who created these federal securities laws, » explains Gerrid Smith, Director of Marketing for Federal Lawyers, a national network of litigation, defense, and compliance attorneys. The pressure is mounting as investors begin to withdraw their support for banking stocks, as the collapse of SVB and the ensuing repercussions led to a decline in medium-sized lender First Republic Bank (NYSE:FRC), triggering the start of mass selling. As investors were seen dumping banking stocks and consolidating their portfolios. Today, nearly five months after the incident, investors are still somewhat concerned about the banking sector, looking outward and seeking diversification due to the decline in performance. As investors continue to exercise due diligence, here are three riskier banking stocks that investors may consider selling in the coming months. UWM Holdings Corporation Despite some optimism in the stock market in recent weeks, regional mortgage lender UMW Holdings (NYSE:UWMC) has faced criticism as the company has seen its earnings and overall financial performance decline amid rising interest rates. Based on financial performance, quarterly revenues decreased by 23.28%, while total net income decreased by over 154.45%. The Michigan-based bank had similar performance at the end of last year, with fourth-quarter 2022 revenues cut in half compared to the same period in 2021, and a 70% decline in total loan origination revenue. Additionally, the fourth quarter of 2022 recorded losses of over $62.5 million, and in May of this year, the stocks plunged over 18% in day trading due to volatile performance in the banking sector. While the stock’s performance has been somewhat promising, with a 98.24% gain so far, the financial situation and increasing risk of further losses weaken investor interest in UWMC. At the same time, analysts have downgraded their ratings on the company as bearish sentiment on weak financial performance hampers potential long-term prospects for UMWC stocks. Zions Bancorporation Zions Bancorporation (NASDAQ:ZION), a Utah-based holding company, has experienced similar bearish sentiment, with several analysts, including Goldman Sachs (NYSE:GS) now holding a « hold » position on ZION, and JPMorgan Chase (NYSE:JPM) giving a « hold » rating. The company’s stocks have recently declined. Based on the latest quarterly filings, quarter-over-quarter net interest income decreased from $679 million to $591 million in the second quarter of the year. Elsewhere, the company reported a 9% decrease in net income before provision for the same quarter. Year-over-year net income decreased by less than 14%, and stocks dropped 44.21% between March and July, prompting investors to withdraw their support for ZION stocks. To date, the stock is already down over 21% and has seen some gains in recent days, but the performance remains disappointing for investors favoring banks and financial lenders looking to overcome turbulent economic conditions. On average, market price targets for ZION stocks have also been zigzagging, with Wall Street analysts having a lower forecast of $27.00 per share, while the average target reflects a 6.07% decrease from its previous price range of $37.00 per share. In recent weeks, stock prices have steadily gained momentum; however, there is still much uncertainty as investors are still unsure if the company can withstand the rising interest rates, as consumers and businesses continue to feel the pressure of higher borrowing costs. PacWest Bancorp California-based lender PacWest Bancorp (NASDAQ:PACW) has experienced turbulence related to the recent banking crisis following the collapse of SVB and the disappearance of First Republic Bank in March. Similarly, in recent weeks, research analysts and companies covering the company have given a « hold » rating to PACW stocks, knowing that Pacwest is currently pursuing a number of strategic initiatives to help restore its balance sheet and seek alternatives. Investors have maintained their bearish sentiment on PACW stocks since the end of last year, and based on earnings per share performance…

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