Bank stocks rise as Wall Street panic subsides

KBW Bank Index, which tracks 24 big and regional bank stocks, rose 5.5%, a sign that the panic gripping the banking sector on Monday was receding.

Shares of First Republic Bank, which plunged as much as 70% yesterday in intraday trading, shot up 50% on Tuesday.

Analysts say other regional banks are less vulnerable because they have a more diverse customer base.