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Overconcentrated in Bank and Financial Stocks? If So, You May Have a Claim for Investment Fraud

March 10, 2023 Investigations

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 for a free evaluation of your potential legal rights.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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