Mass Withdrawals Spark Stock Plunge at Regional Bank PacWest

PacWest experienced a 9.5% decline in deposits during the first week of May, causing its stock to drop by over 20%.
The significant loss of deposits occurred after media reports that PacWest was exploring strategic options and in the days following the announcement.
PacWest’s stock price has declined substantially in recent months due to broader concerns about the impact of higher interest rates on deposits at regional banks.
The drop in PacWest’s stock price ignited further fears among customers about the safety of their deposits, fueling additional withdrawals.
PacWest’s financial difficulties follow the collapse of three major US banks within weeks and have added to pressures on midsize lenders.