Another Bank Failure? PacWest Shares Fall 72% in 2023; Considering Options

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On Wednesday Bloomberg reported that PacWest Bancorp is considering a sale or other options.  The California-based bank has not begun an official process for auction, according to Bloomberg, however it indicated selling all of the bank’s businesses as one has not been considered as the best option.  Odeon Capital Group Financial Strategist Dick Bove expects more regional banks, such as PacWest, will fall and argues that the federal government doesn’t have the money to prevent it from happening.  PacWest is considering raising capital or breaking up its businesses as possible options.  Since the beginning of 2023, their shares have dropped nearly 72%.  After hours on Wednesday, the shares dropped almost 52%.  The news of PacWest comes on the heels of JPMorgan Chase’s deal with the FDIC to buy First Republic Bank.