Banks, Asset Manager Stocks Fall as Credit Concerns Persist

Shares of financial firms slid on Friday, as fresh worries over private credit combined with a broad market selloff to hit the weakened sector.

Investors showed little patience for bad news, as the S&P 500 Index tumbled to close at its lowest levels since mid-December. Among the biggest losers was Western Alliance Bancorp, whose shares fell 8.5% after the bank said it will take a roughly $126 million charge because of a loan tied to bankrupt auto-parts company First Brands Group. The bank also filed a lawsuit against Jefferies Financial Group Inc.