U.S. regional bank stocks dive after hours as PacWest weighs options

After a liquidity boost last month failed to inspire investor confidence, PacWest is now considering alternatives that may include a sale or capital raise, a person familiar with the matterThe late-day drop in regional bank shares added to losses in Wednesday's regular trading session, despite reassurances by U.S. Federal Reserve Chair Jerome Powell that the country's banking system remains resilient.

In a press conference after the Fed announced a much anticipated 25-basis hike in interest rates, Powell said the U.S. banking sector remained sound and resilient despite "strains" in March that led to tighter economic conditions.near a one-month high in options marketsThe recent regional bank selloff indicates investor unease over their outlook, Brown Brothers Harriman analysts wrote in a note.

The exposure of regional banks to the commercial real estate sector, particularly office buildings, has also sparked investor worries, given rising interest rates.

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