Overconcentrated in Bank and Financial Stocks? If So, You May Have a Claim for Investment Fraud
Our law firm is investigating potential claims for investment fraud by investors who were concentrated heavily into bank and financial stocks. In this rising interest rate environment, many financial advisors were steering their customers into bank and financial stocks. They claimed that banks and financial firms would reap higher profits and net interest margins from rising interest rates. However, banks and financial firms have always been subject to potential contagion risk.
On March 10, 2023, SVB Financial (SVB) was taken over by regulators after losing billions of dollars in an asset fire-sale. SVB shares fell 87%. SVB which owns Silicon Valley Bank has raised billions of dollars of capital for technology companies and other private equity firms. SVB’s troubles have had a major impact on other banks and financial firms such as JPMorgan Chase (JPM), Morgan Stanley (MS), Charles Schwab (SCHW), Bank of America (BAC) and Wells Fargo (WFC), which have shed billions in value as their stock prices have tumbled.
If you have a concentration in bank or financial stocks and have taken losses, you may have a claim for investment fraud. Any high concentration in a single sector can expose an investor to excessive, unnecessary risk. This risk can be unsuitable for investors who seek low-risk investments or preservation of capital. An investor with excessive risk from unsuitable investments has a potential legal claim for investment fraud and should contact our firm for a free evaluation of your portfolio.
Investors Have Options – Contact an Investment Fraud Attorney Today to Discuss
If you have losses due to bank and financial stocks, please call investment fraud attorney Jake Zamansky at (212) 742-1414 or email email@example.com for a free evaluation of your potential legal rights.