PacWest Bancorp (NASDAQ:PACW) stock joins the growing list of bank stocks taking a beating on Monday as recent news worries investors.
The news affecting bank stocks today is connected to the failure of SVB Financial (NASDAQ:SIVB). The closing of that bank shattered investor confidence in certain banks, which kicked off today’s negative momentum.
While the federal government stepped in on Sunday to try and alleviate matters, it hasn’t protected bank stocks, including PACW, from falling today. That help includes new loans, as well as the Federal Reserve helping out banks too.
Citi analyst Keith Horowitz said the following in a note to clients obtained by CNBC:
“We believe regionals with less diversified and large uninsured deposit bases are at risk of deposit flight but not at the speed of SVB and they should have time to tap wholesale funding markets (such as FHLB) and raise cash levels.”
How This Affects PACW Stock on Monday
PACW is among bank stocks seeing heavy trading today as investors sell their shares. As of this writing, more than 5 million shares of the financial company’s stock have been traded. To put that in perspective, the company’s daily average trading volume is closer to 2.2 million shares. It also suffered from 38 million shares trading on Friday, which sent it 37.9% lower.
PACW stock is down 44.5% as of Monday morning.
There’s even more stock market news for traders to sink their teeth into below!
We’ve got all of the hottest stock market coverage for investors to read about on Monday! That includes further breakdowns of bank stocks falling today, and more of the latest stock market news today. All of that is ready to go at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
