Regional bank stocks move lower after Senate's banking hearing.

The Yahoo Finance Live team looks at regional bank stocks as they close Tuesday lower following the Silicone Valley Bank hearing on Capitol Hill.

Video transcript

DAVE BRIGGS: Regionals ending the day in the red. Pac West down, let's see, about 5% on the day. Western Alliance down just fractionally and First Republic continues to fall down 2 and 1/2%. All of this moving on the Senate Banking hearing today, which certainly was an interesting back and forth as they pressed regulators on the Fed's inability to stop the SVB collapse. And most of the references today were about this ongoing report, which, frankly, we will not see until May 1st. So, yes, a couple of senators referenced the fact that they need to come back before the Senate after that report is released.

Elizabeth Warren, who you see there, got some very satisfying answers and the need for more regulation. But again, the question is, is more regulation really the answer here? Cynthia Lummis, who joined us earlier, said the Fed had all the tools in place to further regulate and to stop this collapse. Again, the Fed late to the party and raising rates late to the party in seeing this SVB collapse coming. I don't know that really all that much was accomplished today in this hearing, but we did start a meaningful conversation, one that's not done until we get a public accounting of what happened and dissect that report in early May.

SEANA SMITH: Yeah, certainly. And I think a lot of the talk here is just about the risk that was taken at SVB specifically and why that is so different than some of the balance sheets that we are seeing at from many of the other banks. When you take a look at these losses, though, First Republic off about 88%, nearly 90% in the last month. Obviously, a lot of those losses coming in the last three weeks.

Pac West off about 66% in the last month, so a lot of that concern, maybe some of the jitters that we initially saw in the wake of SVB's collapse, that at least has been settled for now. But certainly, lots of questions remain about what the future looks like for the banking industry, whether or not the debate over if more regulation is needed, and then, of course, the fully backstopping all deposits as well.

DAVE BRIGGS: I should add, the KRE, which is the regional banking ETF, essentially flat today, down just fractionally. It gives you a pretty good sense of the regional banking sector altogether.