(Bloomberg) — PacWest Bancorp led a renewed slide in regional banks after a report that it’s weighing strategic options including a sale heightened concerns that the turmoil engulfing smaller lenders is far from over.
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The Beverly Hills-based lender plunged as much as 60% in postmarket trading, while Western Alliance Bancorp fell as much as 38%. PacWest has been working with a financial adviser and has also been considering a breakup or a capital raise, according to people familiar with the matter.
The upheaval that has claimed multiple banks and erased more than 75% from PacWest’s share price since early March is persisting, despite the lender reporting last month that deposits had stabilized. Federal Reserve Chair Jerome Powell said Wednesday that bank conditions had “broadly improved” since early March, though he noted that the sector’s strains “appear to be resulting in even tighter credit conditions for households and businesses.”
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2023-05-03 18:09:06
Article from finance.yahoo.com