Wall Street hasn't covered itself in glory amid the turmoil of the banking sector. Analyst ratings and commentary related to the two banks that collapsed this month have not been helpful to investors. It's not all analysts' fault though, and understanding why may help investors in the future.
Most on the street did not appear to see these bank failures coming. Both
(ticker: SIVB)—the parent company of the failed Silicon Valley Bank—and defunct Signature Bank (SBNY) were previously making a lot of money and were expected to turn profitable in 2023. In fairness, the regulators also failed to predict the current turmoil.