Key Points
The regional lenders shares tumbled nearly 52 per cent in extended trading after reports emerged that the bank was weighing strategic options, including a sale or capital raising...
Multiple sources said the Los Angeles-headquartered bank holding company is exploring a sale or fundraising, triggering a sharp slide in shares of other US regional lenders in after-market trading...
The lender has also confirmed that it is in talks with potential partners and investors about strategic options amid the ongoing US banking crisis that has already claimed four victims Silvergate Bank, Silicon Valley Bank, Signature Bank, and First Republic Bank...
PacWest said in a statement that it had not experienced any unusual deposit outflows since the sale of First Republic Bank to JP Morgan Chase & Co was announced on Monday.. It added that the planned sale of its $2.7 billion lender finance loan portfolio remained on track and would increase its common equity tier one ratio from 9.21 per cent to at least 10 per cent on completion...
This shows that investors in the US are worried about the health of regional banks despite regulators efforts to put an end to the banking crisis that started with the collapse of Silicon Valley Bank and Signature Bank in March...
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