The U.S. banking crisis has deepened with PacWest Bancorp (PACW) stock falling by more than 20% as the bank’s deposits declined by over 9.5% last week.

The U.S. banking crisis isn’t getting any better as the investors rush to withdraw their deposits from PacWest Bancorp.

PACB is trading more than 20% below Wednesday’s closing price today. The fearful sentiment emerged after the bank said that deposits went down by approximately 9.5% last week in a filing with the Securities and Exchange Commission (SEC)

However, the bank sought to reassure investors by saying it has liquidity of over $15 billion immediately available.

PacWest pointed to news articles as a reason for a 9.5% deposit decline.

It said:

“The news headlines increased our customers fears of the safety of their deposits. During the week ended May 5, 2023, our deposits declined approximately 9.5%, with a majority of that decline occurring on May 4th and May 5th after the news reports on the afternoon of May 3rd.”

Bloomberg reported on May 3 that PacWest Bancorp was exploring different strategic options, including a sale.

After the collapse of Silicon Valley Bank, Silvergate, and Signature Bank in March, the U.S. banking crisis has intensified. And this month’s seizure of First Republic Bank proved that it is far from over.

Based on various reports, nearly half of America’s 4,800 banks are “burning through their capital buffers.” A Stanford University banking professor says more than 2,315 banks are currently sitting on assets worth less than their liabilities.

Meanwhile, the U.S. might default on its public debt payments by June 1 if Congress doesn’t raise the debt ceiling.

Got something to say about the U.S. banking crisis or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

The post PacWest Bancorp Crashes 20% Due to Declining Deposits  appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

104 +