(Bloomberg) — Western Alliance Bancorp and other US regional bank stocks sank in afterhours trading as PacWest Bancorp plunged following a report that it’s said to weigh strategic options including a sale.
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PacWest dropped as much as 60% in the postmarket session, while Western Alliance fell as much as 32%. The SPDR S&P Regional Banking ETF is lower by over 5%, following the report. Comerica Inc. and Zions Bancorp fell more than 10% each while the NJ-based lender Valley National Bancorp sank as much as 26%.
The sector has been under pressure amid the collapse of a few regional lenders, including First Republic Bank and Silicon Valley Bank. The tumult has deepened this week, with the KBW Regional Banking Index sinking 8.9% through Wednesday’s close.
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