![]() Nearly all have large amounts of low-interest bonds and commercial real estate assets on their books, and would record losses if they sold them on the open market. ![]() The regional banks that have run into trouble have seen heavy outflows of deposits and need to raise capital. Still, investors feared that PacWest’s fate could mirror that of another California bank - First Republic - which spent weeks looking for a buyer before failing Monday. The bank experienced significant deposit outflows after Silicon Valley Bank failed in mid-March, but said deposits have increased since March 31, including in its venture banking division, which serves technology and start-up companies. ![]() With $44bn in assets, PacWest is roughly one-fifth the size of the three regional banks that failed over the past two months - Silicon Valley Bank, Signature Bank and First Republic Bank. PacWest, based in Los Angeles, said in a statement that it was not experiencing any out-of-the-ordinary deposit withdrawals and still plans on selling off some assets to free up cash on its balance sheet. Shares of smaller regional lender PacWest Bank plunged nearly 50 percent Thursday after the company confirmed reports that it was considering “strategic options,” that may include the possible sale of the company. Uncertainty continued to pummel the banking industry, despite assurances from financial regulators and bankers such as Jamie Dimon that the worst of the recent crisis is over and the health of the banking system remains strong.
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