PacWest Bancorp (NASDAQ: PACW) shares fell more than 55 percent in after-hours trading on Wednesday following news that company executives were considering a potential sale.
Bloomberg reported, citing anonymous sources, that the regional bank, which has been weakened by the failure of three California-based lenders, has been contemplating a number of strategic alternatives, including a sale.
Shares of the Beverly Hills-based bank have already taken a hit in the aftermath of Silicon Valley Bank’s failure in March. PacWest’s stock has plunged 76 percent from more than $26 on March 8 to $6.42 as of 6:33 p.m. on May 3.
The news comes just hours after the Federal Reserve said that the worst of the banking turmoil was over. Following the conclusion of the Federal Open Market Committee (FOMC) meeting on Wednesday, Fed officials reiterated that the “banking system is sound and resilient.”…