- by cnn
- 22 Sep 2023
Shares of PacWest Bancorp tumbled Thursday after the regional bank reported that customers had recently drawn down about 9.5% of total deposits.
The bank's stock briefly fell 30% before being halted for volatility Thursday. Shares resumed trading and finished down about 23%.
PacWest is one of several mid-size lenders that has been under intense scrutiny in the weeks since Silicon Valley Bank collapsed on March 10, setting off a panic around the financial stability of similarly positioned banks.
"PacWest is starting to look like the weakest link and some traders are wondering if they will fail or have a sale," said Ed Moya, a senior market analyst at Oanda.
Although the deposit news is troubling, Moya said, "it might not mean the end, as they have a lot of cash on hand and currently seem positioned to weather this storm."
The LA-based bank has about $15 billion in readily available cash and just $5.2 billion in uninsured deposits.
PacWest didn't immediately respond to a request for comment.
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