Shares of PacWest Bancorp, a bank holding company based in Los Angeles, fell 56% in over-the-counter trading on May 3. In light of the crisis, the company is now exploring its options and has hired consultants to study long-term strategies. They are also reportedly being advised by Piper Sandler and Stephens.
Their market capitalisation has fallen 72% this year and on the day before the fall on May 3 they declined 2% in regular session trading, marking the fifth consecutive losing day. Moreover, in the first quarter of 2023, deposits fell by $5 million to $28.2 billion as of March 31.
PacWest has become another institution that may soon close its doors.
Since the beginning of the year, First Republic Bank has become the fourth US bank to go bankrupt. Before that, three cryptocurrency banks - Silvergate, Signature and Silicon Valley Bank (SVB) - were consecutively closed by the US government. The most significant closure was Signature Bank, with a staggering $118bn in depositor losses.