PacWest tumbles 60% as US regional banks bleed

Shares of PacWest (NASDAQ: PACW) fell more than 60% on Thursday morning as the stock market opened lower amid fresh sell-off for regional banks. 

The PAWC stock had been halted following massive volatility and traded to lows of $11.35 as uncertainty in the US banking system reigned supreme.

US regional banks tank amid sector uncertainty

The sell-off for the PacWest bank was also mirrored across several other regional banks, with the rot having hit a new level after the collapse of Silicon Valley Bank. As Invezz highlighted here, it was only a matter of time before more banks bled following the collapse of First Republic Bank.

Western Alliance (NYSE: WAL) dumped nearly 60% after news emerged the bank was weighing up a potential sale. Shares of First Horizon National (NYSE: FHN) and Zions (NYSE: ZION) were down 38% and 17% respectively as the latest negative reports around regional banks hit investor sentiment like a sledgehammer to the head. For First Horizon, the declines come after its $134 billion deal with TD Bank collapsed.

Other bank shares in the red include Comerica at -13% and First Republic Bank, which sparked this latest stress period for the sector, which was down 9%.

The sell-off comes after the US Federal Reserve’s latest interest rate hike of 25 basis points, with the range now to 5.00%-5.25%. While Fed Chair Jerome Powell hinted at a rate pause, banks are likely to continue hitting new stress levels after more than trillion dollars are reported to have been taken out of the US regional banking system.

The post PacWest tumbles 60% as US regional banks bleed appeared first on Invezz.

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