Shares of Los Angeles lender PacWest Bancorp fell 28% as spooked investors bail from regional banks.
this week hasn't stemmed investor concerns about the financial prospects for other regional lenders.
"Wall Street is quickly hitting the sell button as banking turmoil appears it is not going away anytime soon and is ready to focus on the next weakest link — potentially distressed lenders with tremendous exposure to commercial real estate," Edward Moya, a senior market analyst at Oanda, said in a research note.
"That is not spurring the selling now," he said."Instead, the anxiety today is more philosophical, with people asking 'Why do you exist?' with regards to many regionals." Regional bank leaders say they've become collateral damage to Silicon Valley Bank's failure, but some banks showed signs of stress even before SVB's collapse. PacWest saw its deposits fall by $5.7 billion between January and March, Kevin Thompson, chief financial officer, said in an earnings call last week. Western Alliance, which also posted earnings last week, reported $3.3 billion in deposit outflows.
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