PacWest, Western Alliance, and other banks are dropping at the fastest rate since Silicon Valley Bank’s closure.
Another wave of banking fear swept the markets on Tuesday as stocks for PacWest, Western Alliance, and other financial institutions slid over 20% on the day.
This comes shortly after California financial watchdogs took control of First Republic Bank on Monday, of which 84 branches will reopen under JP Morgan Chase.
Another Bank Stock Selloff
The California-based PacWest Bancorp (PACW) saw its shares tank from $8.90 at 9:30 am ET on Monday down to just $5.50 by 11:10 am. It has since slightly recovered to $6.15 at writing time, representing a 27% net daily drop.
Meanwhile, Western Alliance Bancorporation (WAL) headquartered in Arizona has dipped by a similar 20.53% on the day, from $36.18 to $28.96. Other banks including Zions (ZION), and Comerica (CMA) have suffered losses of roughly 10%.
Among the three, First Republic lost the largest share of its deposits in the first quarter at 41%. PacWest and Western Alliance lost 17% and 11% of deposits respectively, as customers sought the perceived safety of larger banks or higher yields within money market funds.
Crypto Twitter Responds
PacWest Bancorp $PACW might be next on the chopping block for bank failures. Down big again today.We are just waiting on Jim Cramer to tell us that it is strong bank in order to confirm the FDIC can move in. pic.twitter.com/84aiOKKPB5— Wall Street Silver (@WallStreetSilv) May 2, 2023