Given what’s going on in the world right now, U.S. bank investors can be forgiven for sticking closer to familiar territory.
Overall, U.S. banks don’t have a significant amount at risk directly in Russia, with by one measure roughly $15 billion worth of exposure to the country, according to Bank for International Settlements data. That is a relative drop in the bucket. But banks’ direct claims aren’t the end of the story and many bank stocks have tumbled with the broader market this year.
One possible worry was that interest rates could rise more slowly if the spillover from Russia’s invasion of Ukraine impacted the U.S. economic outlook. For now, though, the Federal Reserve is sharply moving up its rate projections and penciling in several more increases. Bank stocks are typically closely linked to rates because their…
