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https://www.wsj.com/articles/pacwest-and-the-bank-confidence-genie-b3666c83

PacWest and the Bank Confidence Genie

Shares of regional bank tank as traders start to price in a ‘burned down’ book

and Telis Demos

Updated May 4, 2023 4:26 pm ET

The FDIC seized First Republic Bank early Monday and struck a deal to sell the bulk of its operations to JPMorgan Chase. WSJ’s Ben Eisen explains what led to the bank’s failure and what it means for customers, investors and the industry. Illustration: Preston Jessee

PacWest Bancorp is the latest lender to face an investor panic. What is becoming clear is that investors aren’t willing to give some banks much credit beyond the bare minimum.

The immediate trigger for Thursday’s selloff in PacWest and other regional bank stocks appeared to be a Bloomberg story Wednesday afternoon saying the California lender is looking at “strategic options,” including a sale or breakup.

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