Regional bank jitters

Summary

Marketplace Morning Report – "Regional bank jitters"

Date: October 17, 2025
Host: Sabri Benishore (in for David Brancaccio)

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Overview

This episode of the Marketplace Morning Report centers on growing concerns about the health of regional banks in the United States and the ripple effects from recent bankruptcies in the auto lending sector. The show also covers a legal challenge to a dramatic hike in visa fees for skilled foreign workers and examines the reasons behind a notable dip in international travel to the U.S. Each segment features expert insights, with a concise global economic update to prepare listeners for the day ahead.

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Main Discussion Points & Insights

1. Jitters in Regional Banking & Broader Market Concerns

• Global Stocks Tank: Overnight, global markets turned red amid fears stemming from U.S. regional banks.
• Immediate Causes: Two banks—Zions Bank and Western Alliance Bank—revealed losses due to alleged borrower fraud. While the actual financial impact was modest, the disclosures came on top of bankruptcies at subprime auto lender Tricolor Holdings and auto parts supplier First Brands.
• Market Fallout: Bank stocks plunged, notably Zions, Western Alliance, and Jefferies (an investment bank closely tied to First Brands).
• Wider Worries: Investors question whether there are systemic problems in credit markets, with some fleeing to safe havens like gold and U.S. Treasury bonds.
• Notable Quote:

  "When you see one cockroach, there are probably more."
  — Jamie Dimon, JPMorgan Chase CEO (quoted by Nancy Marshall-Genzer, 01:54)

[00:58 – 02:20]
Nancy Marshall Genzer summarizes the situation, noting both the factual losses and the psychological impact on investors and markets.

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2. Legal Clash Over H1B Visa Fees

• Policy Change: The Trump administration plans to impose a $100,000 fee for H1B visas, which allow U.S. companies to temporarily hire skilled foreign workers.
• Business Pushback: The U.S. Chamber of Commerce has filed suit, calling the fee "unlawful" and arguing it violates the Immigration and Nationality Act’s stipulation that visa fees reflect actual processing costs.
• Industry Alarm: Tech industry leaders are especially concerned, but the Chamber argues the impact will be most severe for small and medium-sized companies.
• Notable Quote:

  "[The Chamber of Commerce is] trying to spin the argument here that this isn't just harmful to the big companies, it's harmful to the small and medium sized companies where this could really impact their business, their ability to operate in this economic environment."
  — Lilly Jamali, BBC North America technology correspondent (03:23)

[02:20 – 03:50]
Lilly Jamali breaks down the rationale for the lawsuit and the broader economic implications, particularly for the tech sector.

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3. Decline in International Travel to the U.S.

• Travel Slump: U.S. Travel Association forecasts a 6.3% drop in international visits for the year.
• Economic Impact: Estimated $31 billion loss in spending, equal to wiping out three years of annual revenue from all 2,400 Hampton by Hilton hotels in the U.S.
• Causes:
  • Negative "rhetoric and policy" leading to "negative sentiment effects."
  • National pride among Canadians and “challenged sensibilities” for other travelers.
  • Concerns around border complications, even if the risk is remote.
• Traveler Diversion: Tourists are choosing Western Europe, the Middle East, and emerging European destinations instead.
• Market Reversibility: Unlike lost commodity markets (e.g., soybeans to China), tourism share can be regained if the U.S. improves its global image.
• Notable Quotes:

  "I think it's notable to have a dip like this. That's the result of what we're referring to as a mix of rhetoric and policy that's contributed to negative sentiment effects."
  — Aaron Ryan, Tourism Economics (05:34)
  "A loss of $31 billion is equivalent to the annual revenue for all of those hotels [Hampton by Hilton] for a three year period."
  — Aaron Ryan (06:43)
  "I think they certainly can be won back... if we kind of showed them that we're continuing to be a welcoming, exciting, expansive destination, that we can win them back."
  — Aaron Ryan (07:37)

[04:51 – 07:53]
Conversation between Sabri Benishore and Aaron Ryan, providing context, data, and prospects for recovery.

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Memorable Moments & Quotes

• Market Anxiety Metaphor:

  "When you see one cockroach, there are probably more."
  — Jamie Dimon (01:54)

• Magnitude of Travel Drop:

  "A loss of $31 billion is equivalent to the annual revenue for all of those hotels for a three year period."
  — Aaron Ryan (06:43)

• Travel Recovery Hope:

  "...if we kind of showed them that we're continuing to be a welcoming, exciting, expansive destination, that we can win them back."
  — Aaron Ryan (07:37)

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Segment Timestamps

• 00:58 – 02:20: Regional bank jitters and market reactions (Sabri Benishore, Nancy Marshall Genzer)
• 02:20 – 03:50: H1B visa fee lawsuit (Sabri Benishore, Lilly Jamali)
• 04:51 – 07:53: Decline in international travel and economic implications (Sabri Benishore, Aaron Ryan)

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Tone and Style

The episode delivers brisk, fact-based reporting with clear and direct language. The tone is serious but explanatory, aimed at helping listeners quickly grasp the morning’s most pressing business and economic stories.

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Conclusion

In under 10 minutes, this episode efficiently unpacks the latest tremors in U.S. regional banking, outlines crucial immigration developments that impact skilled labor, and explores the deeper reasons behind waning international tourism — each providing actionable context for business and policy watchers at the start of the day.

Transcript

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[Sabri Benishore]

Opportunity Builder There is some anxiety over Regional Banks From Marketplace, I'm Sabri Benishore in for David Brancaccio. Global stocks took a hit today. There was red across the board from New York to Japan for a little while there as investors have started to worry about the health of regional banks in the US and the recent bankruptcies of an auto lender and car parts manufacturer Marketplaces. Nancy Marshall Genzer the fills in the.

[Nancy Marshall Genzer]

Details for US Investors worry machines cranked up after two regional banks, Zions bank and Western alliance bank, disclosed alleged fraud by some borrowers. Their losses were relatively low, but their disclosure comes on top of the bankruptcies of the subprime auto lender Tricolor holdings and the auto parts supplier First Brands. Bank stocks plunged yesterday, including shares in Zion's Western alliance and the investment bank Jefferies. It had deep ties to First Brands. Traders are wondering if the there are systemic problems in the credit markets. The big banks say these are isolated issues and not to worry, although JPMorgan Chase CEO Jamie Dimon is on the lookout for more trouble. He says, quote, when you see one cockroach, there are probably more. Some investors are fleeing to safe havens like gold and U.S. treasury bonds. I'm Nancy Marshall Genser for Marketplace.

[Sabri Benishore]

The U.S. chamber of Commerce is suing to block the Trump administration's plans to charge $100,000 for visas for foreign skilled workers. H1B visas allow US employers to hire skilled workers from outside the US on a temporary basis, but the chamber called the new fee unlawful because it says it overrides provisions of the Immigration and Nationality act that govern the H1B program, including the requirement that fees be based on the costs incurred by the government in processing visas. The BBC's North America technology correspondent Lilly Jamali has more the Chamber of Commerce.

[Lilly Jamali]

Represents millions of American companies and we knew that within the tech industry there was quite a bit of consternation about this move. Even as these tech CEOs across the industry have been trying to stay on the right side of Donald Trump on this particular issue, which is so important to the bottom lines of these companies, they haven't had much success. And the Chamber of Commerce is also trying to spin the argument here that this isn't just harmful to the big companies, it's harmful to the small and medium sized companies where this could really impact their business, their ability to operate in this economic environment.

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[Sabri Benishore]

Even before the current government shutdown started disrupting air travel, international travel to the U.S. was already weak. The U.S. travel association expects international visits will have fallen by 6% by the end of this year. That is not great news for hotels or restaurants or anyone counting on those tourism dollars. Here to talk about it is Aaron Ryan, Director of Industry Studies at Tourism Economics. Aaron, good morning.

[Aaron Ryan]

Good morning. Thank you for having me.

[Sabri Benishore]

The US had made real gains in attracting international tourists since the low days of the pandemic went from 20 million travelers in 2020 to over 72 million last year. But now we have this dip. How big is this dip and why is it happening?

[Aaron Ryan]

I think it's notable to have a dip like this. That's the result of what we're referring to as a mix of rhetoric and policy that's contributed to negative sentiment effects.

[Sabri Benishore]

Is it because of like actual hostility between certain countries in the US or is it something, something more?

[Aaron Ryan]

So I think for Canadians, there's probably a good mix that are showing national pride and saying, no, we don't want to be a 51st state. I think there's probably other travelers globally that feel that their sensibilities have been challenged and maybe it gives them a little pause and they choose another destination. And then I think there's concerns about crossing a border. Right. It seems unlikely that somebody would have a complication or get detained, but for some people, that's enough. Why take the risk?

[Sabri Benishore]

US Travel forecasts a 6.3% decrease in inbound international visits for this year. That is millions of people who would have, you know, rented a hotel or a car or eaten in a restaurant. Do we have a sense of, like, what the cost is of this decline?

[Aaron Ryan]

Right. So we just updated our forecast this week and seeing it as the loss of $31 billion of spending by international visitors this year that we think would have happened otherwise. So there's about 2400 Hampton by Hilton hotels in the country. So a loss of 31 billion is equivalent to the annual revenue for all of those hotels for a three year period.

[Sabri Benishore]

If people are not coming here anymore, where are all of these international travelers going instead?

[Aaron Ryan]

Western Europe, also the Middle east, we're seeing growth and to a degree, emerging Europe.

[Sabri Benishore]

You know, when the US has lost other kinds of market share, for example, like supplying soybeans to China, that's not likely to come back. You know, the supply chain has been diverted. Is that the same thing with international travelers or can they be won back?

[Aaron Ryan]

I think they certainly can be won back. There is flexibility in how people view destinations and how they make their choices. And I think if we kind of showed them that we're continuing to be a welcoming, exciting, expansive destination, that we can win them back.

[Sabri Benishore]

Aaron Ryan is Director of Industry Studies at Tourism Economics. Thank you so much.

[Aaron Ryan]

Thanks for having me.

[Sabri Benishore]

In New York, I'm Sabri Benishore with the Marketplace morning report from APM American Public Media.

[Kimberly Adams]

I'm Kimberly Adams, host of Make Me Smart, a podcast from Marketplace that makes today make sense. Join me throughout the week as I dig into the biggest stories in tech culture and the economy. Whether it's a vibe check on the job market or the latest on China, US Relations, Make Me Smart helps you understand how the headlines actually impact your daily life. Listen to Make Me smart on your favorite podcast, apparently.