More banks find themselves facing deep scrutiny and potential storms. PacWest and Western Alliance are in the spotlight as regulators, bankers, markets, and investors. Others are feeling pressure as well.
The market waters were already troubled. The Federal Deposit Insurance Corporation shuttered First Republic Bank on Monday, selling it to JPMorgan Chase. The federal funds rate was pumped up by another 25 basis points on Wednesday, driving up financing costs. Troubled parts of CRE are getting stymied by interest rate cap prices and requirements even more than before. The short end of the Treasurys are up with the 3-month at yield at 5.24%.
And then on Wednesday, Bloomberg said PacWest, the 53rd largest bank, was "teetering" and weighing a range of strategic options, including a sale. That was atop the bank's April 25 earnings report with news of a quarterly $1.21 billion loss. Shares values dropped by 87%.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
