Shares of regional bank Zions dropped 12% following a $50 million charge related to loans from two borrowers facing legal actions. The bank discovered misrepresentations, defaults, and irregularities in the loans and collateral. Western Alliance also fell 10% after filing a lawsuit alleging fraud by a borrower who didn’t provide collateral. The KBW Regional Banking Index was down 6.3% for its worst one-day decline since April 10, affecting other regional banks like KeyCorp, M&T Bank, and Commerce Bancshares, which fell between 5% and 6%.

Read more at Barron’s: Regional Banks Crushed as Fears of Bad Loans Spike