PacWest, Western Alliance Sink as Bank Stocks’ Rout Deepens

First Horizon, TD end deal, PacWest in talks with investors
Sector has been pummeled this year amid bank collapses

WATCH: The turmoil in US regional banking is set to continue, but won’t spill over into the global banking sector as a whole, according to Julius Baer’s Aneka Beneby.Source: Bloomberg

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By Bre Bradham

May 4, 2023 at 12:56 PM UTC

Updated on

May 4, 2023 at 8:25 PM UTC

This article is for subscribers only.

PacWest Bancorp, First Horizon Corp. and Western Alliance Bancorp led a renewed slide in the shares of US regional lenders, adding to concern for a sector that’s been rattled in recent months by the collapse of multiple firms.

The latest upheaval started Wednesday evening after a report that PacWest is exploring strategic options. The bank plunged 51% Thursday, the most on record, to its lowest close ever after saying it’s in talks with potential investors and partners. Western Alliance tumbled 38%. It pared a drop of as much as 62% after saying a report that it’s exploring strategic options including a potential sale is “categorically false.”