Bank investors are in a bit of a conundrum. While many banks look cheap on a valuation basis and the industry’s results have held up relatively well as economic growth slowed, the concern remains that if the U.S. enters a recession, the group’s earnings will decline and their shares could fall further. That’s why investors are asking which banking segment will fare the best in a possible recession, Piper Sandler analysts led by Mark Fitzgibbon wrote in a Wednesday note titled “Where to Hide if Bank Stocks Continue to Slide.” The analysts examined the last two downturns: the 2008 financial crisis and the early 2020 coronavirus selloff. In both cases, smaller banks performed better than the megabanks, Fitzgibbon wrote. That continues to be true during this year’s retrenchment, he noted. The largest banks have lost 15%, while institutions with less than $10 billion in assets were down…
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