PacWest could be the next regional bank to fail. The stock is trading in a downtrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... and there is a total absence of bottom feeders or short covering as of May 14, 2023.
PacWest is a bank holding company that provides various financial services to individuals, families, and businesses. The services offered by PacWest include personal and business banking, commercial lending, wealth management, and online banking. PacWest operates through its subsidiaries, Pacific Premier Bank, Pacific Premier Trust, and Square 1 Bank, and primarily serves clients in California, Arizona, Washington, Oregon, Idaho, and Nevada.
PacWest Looking For a Buyer
PacWest’s stock has fallen by so much that it can’t sell enough stock to raise the money it needs. Worse, deposit flight has hit the bank as customers pull money out of the bank on confidence worries that it will be the next regional bank to fail.
Federal Reserve’s quarterly Senior Loan Officer Opinion Survey (SLOOS)
According to the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey (SLOOS), more lenders have tightened their standards in response to the growing unrest in the banking industry.
According to the Fed report, survey respondents attributed the changes in lending standards to economic unpredictability, a decreased appetite for risk, a decline in collateral values, and general worries about banks’ funding costs and liquidity positions. The above issues as well as customer withdrawals were cited by lenders when they stated that they anticipated tightening standards for all loan categories for the remainder of 2023.