How do write downs in financials affect non financial stocks?

Question

How do write downs in financials affect non financial stocks?

Answer 1

When financial companies write down their capital.  Then this means that they are less able to lend money to non-financial companies.  Which is bad for the whole economy.

It's not a direct reationship.  But trouble for financial companies usualy means trouble for the rest of the economy.  And stock prices often react accordingly.