PacWest falls 30% as regional banks stocks slide to new lows

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Regional bank stocks saw their losses for the week deepen as investors digest the failure of First Republic.

The steep declines deepened losses in the sector from Monday. Over the weekend, regulators seized troubled regional bank First Republic andFirst Republic is the third failure of a large regional bank this year, following Silicon Valley Bank and Signature Bank in March.

First Republic reported a decline in deposits of about 40% during the first quarter, raising questions about how the bank could survive on its own. The recent bank failures and expected regulatory changes in response to them have also raised questions about the long-term profit outlooks for mid-sized regional banks.

 

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