Bed Bath & Beyond has filed for chapter 11 bankruptcy protection in New Jersey district court after its financial turnaround efforts failed to produce results. The company’s stock fell 36.9% in the Monday premarket. Meanwhile, concerns about the vulnerability of the financial system to accidents continue to rattle investors. Rising interest rates have led to more mismatches in assets and liabilities, particularly in U.S. regional banks, which are exposed to commercial real estate.
The IMF has also been scrutinizing nonbank financial institutions, which have grown to account for 50% of global financial assets since 2008. While risks from these strains are mounting, large banks in the U.S. and Europe still have significant capital cushions and liquidity to weather any further turmoil.