PacWest weighs its options, shares in a tailspin

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2023. REUTERS/Brendan McDermid

SYDNEY: PacWest Bancorp is exploring strategic options including a sale or capital raising, a source familiar with the matter says, sending the shares of the bank and several other US regional lenders tumbling in after-market trading.

The fall in shares, including a nearly 60% plunge at PacWest, underscored how investors remain unconvinced about the health of regional banks despite regulators’ efforts to call an end to the banking crisis that started with the collapse of Silicon Valley Bank and Signature Bank in March.