A branch of Pacific Western Bank in Los Angeles, California, United States, on Friday, March 10, 2023.
Eric Thayer | Bloomberg | beautiful pictures
Shares in regional banks fell sharply on Tuesday as the fallout from the third-largest bank bust this year continued to weigh on the sector.
Shares of northwest fell more than 36% on Tuesday and is on track for a fourth straight drop. The stocks have been paused for volatility multiple times.
Shares of PacWest fell again on Tuesday.
The California-based bank is not the only regional lender under pressure. Shares of Western Union down 24%. The SPDR S&P Regional Bank ETF (KRE) down 6.7%.
The sharp drop has deepened losses in the sector since Monday. Over the weekend, regulators seized struggling regional bank First Republic and sold it to JPMorgan Chase.
First Republic is the third failure of a major bank in the region this year, following Silicon Valley Bank and Signature Bank in March.
The reason for Tuesday’s drop was not immediately clear. JPMorgan Chase CEO Jamie Dimon said on Monday that the early stages of the region’s banking crisis were “via.”
First Republic reported a drop in deposits of about 40% in the first quarter, raising questions about how the bank can survive on its own.
Most other regional banks, however, reported a drop in smaller deposits, and some, such as PacWest, reported deposits starting to increase again in late March.
