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The article investigates market reaction to negative reports published by analysts and auditors for a sample of investment, commercial and savings banks during the 2008 financial crisis and compares the results to noncrisis periods. The results show that during 2008, analysts' downgrades and underperformance reports resulted in stronger negative returns than during noncrisis periods and that investment banks experienced the worst stock price declines. The market reaction to auditors' issues and going concern flags is different during the crisis as well. In noncrisis periods no reaction to auditors' bad news is reported, while during the crisis there is a negative and significant reaction for investment banks only. Overall, the type of bank, investment versus commercial, significantly contributes to explaining the variability in returns during the financial crisis.
