Why Bank Stocks Like PacWest and First Republic Are Falling Hard (Again) on Friday
Here we go again. Following serious drubbings on Thursday, several bank stocks are losing lots of ground again today. Shares of PacWest Bancorp (NASDAQ: PACW), Signature Bank (NASDAQ: SBNY), and First Republic Bank (NYSE: FRC) are down 33%, 24%, and 23%, respectively, as of as of 1:31 p.m. ET Friday, with trading of all three tickers halted at one point this morning in an effort to curb runaway selling.
Don't look for any company-specific reasons these stocks are on the defensive today, however. You won't find them.
Rather, blame the ripple effect from the meltdown of SVB Financial Group (NASDAQ: SIVB), also known as Silicon Valley Bank. This banking outfit largely serving California's technology sector is essentially collapsing after being unable to raise the $2.25 billion in capital it says it needed. The market is presuming other banks and lenders of this ilk are in similar fiscal trouble.
Source Fool.com
