PacWest Bank enters death spiral… Regional banks are under pressure again

via WSJ:

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Shares of PacWest Bancorp PACW -22.70%decrease; red down pointing triangle fell 23% Thursday, dragging down other midsize banks, after PacWest disclosed another round of deposit flight.

The bank said in a securities filing that it lost 9.5% of its total deposits last week. PacWest stock was halted several times because of volatile trading.

Last week started with the collapse of First Republic, which made some bank investors worry that the turmoil in regional banks will continue to spread. But PacWest said that the majority of its deposit outflows occurred on May 4 and 5, after news reports that said PacWest was exploring a potential sale.

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