More regional banks under siege in the wake of First Republic failure

First Republic Bank was seen as the most likely next domino to fall amid the chaos of Silicon Valley Bank’s failure about two months ago. On Monday, it was announced that the bank was being taken over by the Federal Deposit Insurance Corporation and sold to JPMorgan in an effort to calm markets, but now the stocks of other major regional banks are facing fresh turmoil.

The move comes after PacWest, which has about $44 billion in assets, is said to be exploring “all options,” including a possible sale, CNBC reported on Wednesday. Piper Sandler and Stephens are reportedly advising PacWest. The bank said it has been in discussions with partners and investors.“The company will continue to evaluate all options to maximize shareholder value,” the California-based bank said in a statement.

“There is not a single element of the article that is true. Western Alliance is not exploring a sale, nor has it hired an adviser to explore strategic options. It is shameful and irresponsible that the Financial Times has allowed itself to be used as an instrument of short sellers and as a conduit for spreading false narratives about a financially sound and profitable bank,” a spokesperson told CNN.

The faltering regional bank stocks appeared to drag down the broader stock market as well. The Dow Jones Industrial Average fell more than 300 points around midday Thursday, and the S&P 500 was off by about 0.5%.

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