PacWest Bancorp Considers Sale Amidst Industry Turmoil: Shares Tumble Over 50% in After-Hours Trading

Shares of PacWest Bancorp tumbled over 50% in after-hours trading on Wednesday after reports that the California-based bank is considering a sale, following the recent collapse of several other regional banks. The bank has confirmed that discussions with potential partners and investors are ongoing. In a statement, the bank said that it is considering all options to maximise shareholder value, including a sale, breakup or raising fresh capital.[0] PacWest has experienced a decline in total deposits since the end of the first quarter, but said that core customer deposits have increased.[1] The bank also confirmed that it has not experienced “out-of-the-ordinary” deposit outflows following the sale of First Republic Bank, a regional lender based in San Francisco that was recently seized by regulators.[2] PacWest’s shares fell in response to the Federal Reserve’s recent rate hikes, which have been blamed for causing the collapse of several other regional banks. Billionaire investor, Bill Ackman, criticised government regulators on Twitter, saying that “confidence in a financial institution is built over decades and destroyed in days” and calling for action to prevent further bank failures.

0. “Regional bank stocks continue to slide on Thursday with PacWest leading the way down 40%” CNBC, 4 May. 2023,

1. “PacWest Bancorp considering ‘all options’ as shares tumble” The Hill, 4 May. 2023,

2. “PacWest (NASDAQ:PACW) Stock Tanks on Report of a Possible Sale” TipRanks, 4 May. 2023,