Why Shares of PacWest Bancorp Are Plunging Today
Shares of PacWest Bancorp (NASDAQ: PACW) traded roughly 24% lower as of 11:51 a.m. ET today after the bank disclosed in a regulatory filing that deposits declined by about 9.5% during the week ended May 5.
PacWest has been the most pressured stock in the banking sector since the collapse, seizure, and subsequent sale of First Republic Bank last week. In the filing, the bank said this event "heightened market and customer fears of additional bank failures, including PacWest."
Furthermore, the bank said that subsequent media reports on May 3 of the bank exploring strategic options and speaking with potential partners and investors led to a big sell-off of the stock and increased concerns among the bank's customers, which prompted deposit outflows. PacWest added that the majority of the deposit outflows it witnessed occurred on May 4 and May 5 right after the media reports.
Source Fool.com
