Shares of another troubled US bank, PacWest, fell 30% – Kommersant
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Today, May 11, California bank PacWest Bancorp shares fell 30% after it informedthat over the past week in May, depositors withdrew almost 10% of deposits from it. The stock later rose slightly, but was still 25% lower than it was at the close of trading on Wednesday.
About the problems of PacWest became known May 3, when the American media wrote that the bank was exploring options for its sale. This caused investor anxiety in the face of the recent failure of two California banks – Silicon Valley Bank And First Republic Bank, which were closed and their assets sold to other, larger US banks. True, PacWest is much smaller – its assets amount to about $40 billion against more than $200 billion from the other two banks.
Today in its quarterly report, PacWest said it had $28 billion in deposits as of May 2 (vs. $34 billion at the end of 2022), but they declined by 9.5% over the week following. “The headlines have heightened our clients’ concerns about the safety of deposits,” the bank said in a statement. The bank ended the first quarter with a loss of $1.2 billion. Since the beginning of the year, PacWest shares have fallen by more than 70%.
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