Joe Biden’s America.
Another regional bank is teetering in Joe Biden’s America.
PacWest Bancorp shares tumbled nearly 60% in after hours trading on Wednesday on rumors of a sale.
The Regional banks stocks began to crash on Tuesday.
By Wednesday shares of many West Coast regional banks plunged.
PacWest does not have any potential buyers yet, according to Bloomberg.
PacWest is weighing other options including a capital raise, CNBC reported.
CNBC reported:
PacWest Bancorp shares tumbled 53% in extended trading on Wednesday following a report that the bank is weighing strategic options, including a potential sale.
The regional bank has been assessing options, including a breakup or a capital raise, according to a Bloomberg report citing sources familiar. A formal sale has yet to start as PacWest does not have many potential buyers interested in the whole firm, the report said.
A PacWest spokesperson did not immediately respond to a request for comment.
The shares of many West Coast regional banks have been hit particularly hard since the collapse of Silicon Valley Bank in March, in part because of concerns that their customer bases are similar. The Los Angeles-based PacWest has a roughly $750 million market cap, and is down by 72% this year.
Other regional banks declined in extended trading following the report, with the SPDR S&P Regional Banking ETF
shedding 4.4%. Shares of Western Alliance Bancorp
dropped 29%, while Comerica
slid 11%. KeyCorp
shares fell 6%.
PacWest reported that total deposits declined more than $5 billion in the first quarter to $28.2 billion as of March 31. However, the company said that it saw a net gain of $1.1 billion in deposits from March 20 until quarter end.
Other regional banks taking a beating:
1. Western Alliance, $WAL
2. Metropolitan Bank, $MCB
3. HomeStreet, $HMST
4. Zions Bank, $ZION
5. KeyCorp, $KEY
6. HarborOne, $HONE
7. Citizens Financial, $CF
Three banks have collapsed since March: Silicon Valley Bank, Signature Bank and First Republic Bank.
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