Rally

Wednesday

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">After falling sharply throughout the week, the shares of multiple US regional banks experienced a dramatic rally on Friday, May 5th. PacWest saw the most significant rise throughout the day and closed more than 82% in the green. Despite the positive turn today, most of the banks’ shares are still significantly lower than they were when they opened on Monday.</p> 
<h3 id="regional-banks-rally-significantly-on-friday-but-fail-to-recover-all-of-the-week-s-losses">Regional Banks Rally Significantly on Friday But Fail to Recover All of the Week’s Losses</h3> 
<p>Throughout Friday, the stocks of multiple American regional banks experienced a significant rally. PacWest’s shares saw the most significant rise and closed the trading day 81.70% in the green at $5.76. Despite the rally, the bank is still down more than 43% since Monday as it had, among other setbacks, experienced a sharp drop on Wednesday after it was reported <a href="https://tokenist.com/pacwest-bank-collapses-53-after-reports-of-possible-sale-emerge/" rel="dofollow" class="deco-link">it is seeking a buyer</a>.</p> 
<p>Western Alliance also saw a dramatic rise of 49.31% on Friday. The bank was embroiled in drama on Thursday when it declined close to 50% after <a href="https://www.ft.com/content/bf2bd5af-1e55-4be3-b29d-f5cae9533b29" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">a Financial Times report</a> indicated it is, much like PacWest, exploring strategic options. On the same day, the bank’s shares whipsawed and mildly recovered after it published a statement <a href="https://tokenist.com/western-alliance-denies-its-looking-for-buyers-calls-ft-report-shameful/" rel="dofollow" class="deco-link">claiming the initial report was false</a>.</p> 
<p>Despite also dropping around 37% for the week, the shares of First Horizon Bank failed to recover as much as the other two lenders on Friday. Its stock was up only 8.75% by the market’s close as the major reason for its drop came in the form of a <a href="https://www.cnn.com/2023/05/04/investing/first-horizon-td-bank/index.html" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">failed merger with the Toronto-Dominion Bank</a>.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="why-are-us-regional-banks-down-this-week">Why Are US Regional Banks Down This Week?</h3> 
<p>The key event that triggered the selling pressure experienced by multiple US regional banks this week was the <a href="https://tokenist.com/four-us-bank-failures-in-four-months-is-the-wave-over/" rel="dofollow" class="deco-link">receivership and sale of First Republic</a> early on Monday. The regulatory action reignited the banking crisis that has been relatively dormant for around a month and that started in the first half of March.</p> 
<p>Between March 8th and 13th, three US regional banks—Silevrage, Silicon Valley, and Signature—were either liquidated or shut down by the authorities. While the government subsequently implemented emergency measures to stabilize the situation, they failed to fully restore confidence after it was revealed that the lenders were using the discount window <a href="https://tokenist.com/us-banks-borrowed-148b-from-feds-discount-window-this-week-highest-level-since-2008/" rel="dofollow" class="deco-link">to borrow at a pace not seen since 2008</a>.</p> 
<p>By mid-March, First Republic emerged as the most likely fourth bank to fall victim to the crisis. While multiple attempts to rescue the lender, <a href="https://www.reuters.com/business/finance/credit-suisse-borrow-up-54-bln-it-seeks-calm-investor-fears-2023-03-16/#:~:text=March%2016%20(Reuters)%20%2D%20Large,lenders%20over%20the%20past%20week." target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">including a $30 billion injection</a> by some of America’s largest banks, were made, the company was ultimately seized at the beginning of this week.</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><strong><em>Do you think more US banks will be closed before the current crisis is over? Let us know in the comments below.</em></strong></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/pacwest-leads-friday-bank-rally-closes-81-70-in-the-green/">PacWest Leads Friday Bank Rally, Closes 81.70% In the Green</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

PacWest Leads Friday Bank Rally, Closes 81.70% In the Green

Table of Contents

Tokenist

Other articles published on May 5, 2023

BULLISH Crypto AI Altcoins | Get in EARLY!!

Russia and China Abandons The US Dollar; What Does This Mean For Crypto?

SUPER Early Crypto MILLIONAIRE Opportunity

U.S. banking turmoil sparks gold frenzy in central banks

Cyfrin - Top Smart Contract Audit Company

Expert predicts Bitcoin surge after jobs report – Is $30,500 next?

Join our free newsletter for daily crypto updates!