The market value of bank holdings by institutional investors fell more than 19% in the third quarter, the biggest decline since the Russian default that roiled financial markets around the world in the third quarter of 1998.
And some analysts are warning that more of the same is happening in the fourth quarter. "Somebody is selling bank stocks these days, let me tell you," said Scott Edgar, research director for the Sife Trust Fund in Walnut Creek, Calif., which has $1.1 billion invested in the stocks of banks and other financial companies. Not all institutions experienced a drop in the value of their aggregate bank stock holdings, according to data compiled by American Banker. (See tables on page 20.)