PacWest Bancorp weighing up options including possible sale: Bloomberg
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Investing.com — PacWest Bancorp is reportedly weighing up its strategic options including a possible a sale amid concerns about its financial health, Bloomberg reported Wednesday, citing unnamed sources.
PacWest Bancorp (NASDAQ:PACW) was down 53% in afterhours trading following the news.
The regional bank is also mulling a breakup or a capital raise, the report said, citing the sources. But a potential sale isn’t attractive as potential suitors would likely incur a big loss. The bulk, or about 80%, of PacWest’s loan book is exposed to commercial real estate-backed loans and residential mortgages — both of which have been hurt by rising interest rates.
PacWest didn’t respond to a request for comment, Bloomberg said.
The news comes at a tough time for the bank, which has plunged more than 80% since beginning of March despite attempts to reassure investors that deposits had stabilized following a spate of withdrawals in March.
