Banks have been going through a tough period in 2023. It all began with the collapse of Silvergate Bank, Signature Bank, and Silicon Valley Bank, which sent ripples across the financial realm. First Republic Bank halted bank stock trading recently, and the bank was seized by the US government earlier this week.
PacWest Bancorp also witnessed its stock price plunge today by 30%. Following this, PACW stock trading was halted, citing volatility. PACW is trading at $5.34 at press time. The news comes as a follow-up after First Republic Bank was sold to JPMorgan Chase.
PacWest Bancorp in trouble
PacWest Bancorp announced the results for the first quarter of 2023 on April 25. The numbers revealed that it lost billions in the first quarter. The recent halt in stock trading is likely due to a surge in selloffs. This is probably due to the recent wave of bank collapses.
It is not just PacWest Bancorp that witnessed a drop in stock price. Western Alliance Bancorp also witnessed its stock price plunge by 21% today. There has been an evident loss of trust by investors in the banking system due to the recent collapse of some of the prominent traditional financial giants.