Bank stocks drop and S&P 500 swings as Wall Street fear next fallout

Wall Street is worried about what may be next to topple following the second- and third-largest bank failures in U.S. history, and stocks are swinging sharply Monday as investors scramble to find someplace safe to park their money.

The S&P 500 was virtually unchanged in morning trading, but only after tumbling 1.4% at the open.

The sharpest drops were again coming from banks. Investors are worried that a relentless rise in interest rates meant to get inflation under control are approaching a tipping point and may be cracking the banking system.

The U.S. government announced a plan late Sunday meant to shore up the banking industry following the collapses of Silicon Valley Bank and Signature Bank since Friday.

The most pressure is on the regional banks a couple steps below in size of the massive, too-big-to-fail banks that helped take down the economy in 2007 and 2008. Shares of First Republic plunged 78%, even after the bank said Sunday it had strengthened its finances with cash ..