×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: pacwest | regional banks

As PacWest Tumbles 37%, Other Regional Banks Fall 

As PacWest Tumbles 37%, Other Regional Banks Fall 
(Dreamstime)

Thursday, 04 May 2023 05:42 AM EDT

Shares of U.S. regional banks fell premarket Thursday, hurt by a 37% slump in PacWest Bancorp after its announcement about exploring strategic options spurred market concerns of a worsening banking crisis.

Western Alliance Bancorp shares slumped 17% despite an attempt to reassure investors that it had not experienced unusual deposit outflows following the sale of collapsed lender First Republic Bank to JPMorgan Chase & Co. on Monday.

Zion Bancorporation, KeyCorp, Valley National Bancorp, Comerica and First Horizon dropped between 2% and 6%. The SPDR S&P Regional Banking ETF shed 2.8%.

Reuters reported on Wednesday that Los Angeles-based PacWest was exploring strategic options including a potential sale or capital raising, after a liquidity boost announced in March failed to inspire confidence in its ailing share price.

"Investors are worried that it (PacWest) will be the next domino to fall as worries swirl about deposit flight and the lack of asset diversification among smaller lenders," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

The slide in shares of PacWest and its peers highlights uncertainty around the health of regional banks despite regulatory efforts to call an end to the banking crisis that started with the collapse of Silicon Valley Bank and Signature Bank in March.

U.S. Federal Reserve Chair Jerome Powell on Wednesday reiterated the country's banking system remains resilient despite "strains" in March after the central bank delivered a 25-basis rate hike.

PacWest Bancorp reported a loss of $1.1 billion attributed to shareholders for the first quarter of the year.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Shares of U.S. regional banks fell premarket Thursday, hurt by a 37% slump in PacWest Bancorp after its announcement about exploring strategic options spurred market concerns of a worsening banking crisis.
pacwest, regional banks
252
2023-42-04
Thursday, 04 May 2023 05:42 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved