The banking turmoil persists as PacWest Bancorp (PACW) experiences a significant drop in stock value, surpassing 50% during after-hours trading. This decline follows a Bloomberg report indicating that the U.S. bank is considering various strategic alternatives.
In response to the news, Bitcoin (BTC) witnessed a positive trend, surging over 2% to reach $28,900 at the current moment.
Just days following the Federal Deposit Insurance Corp. (FDIC) taking over First Republic Bank (FRC) and subsequently selling it through an auction to JPMorgan (JPM), the announcement regarding PacWest shows up.
“I think the banking system is very stable. … This part of the crisis is over.” JPMorgan CEO Jamie Dimon said.
Following the recent Federal Open Market Committee meeting, Federal Reserve Chairman Jerome Powell expressed similar sentiments. After the central bank's tenth consecutive interest rate increase, Powell affirmed the strength and resilience of the banking system.
On Thursday, several regional bank stocks experienced downward movement, with Western Alliance Bancorp (WAL) dropping by 28% and Metropolitan Bank (MCB) declining by 19%.
