PacWest Bank enters death spiral… Regional banks are under pressure again – Investment Watch

via WSJ:

Shares of PacWest Bancorp PACW -22.70%decrease; red down pointing triangle fell 23% Thursday, dragging down other midsize banks, after PacWest disclosed one other round of deposit flight.

The bank said in a securities filing that it lost 9.5% of its total deposits last week. PacWest stock was halted several times due to volatile trading.

Last week began with the collapse of First Republic, which made some bank investors worry that the turmoil in regional banks will proceed to spread. But PacWest said that nearly all of its deposit outflows occurred on May 4 and 5, after news reports that said PacWest was exploring a possible sale.

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