In a new filing with the US Securities and Exchange Commission (SEC) on Thursday, PacWest Bancorp revealed large new cash outflows in recent days from the bank it owns, Pacific Western Bank, but reaffirmed its ability to fund those withdrawals with available liquidity.
According to the filing, which was actually for the first financial quarter that ended on March 31, PacWest also noted it lost 9.5% of its share value in the week preceding May 5.
The majority of those withdrawals, it said, came after media reports the company was “evaluat[ing] all options to maximize shareholder value” as part of the continued fallout of the collapse of Silicon Valley Bank earlier this year.
It also said in the filing that the Federal Reserve’s seizure and sale of First Republic Bank had “heightened market and customer fears of additional bank failures, including PacWest.”
The fear is palatable as First Republic, Silicon Valley Bank, and Signature Bank have all collapsed amid bank runs in the last few months, and even large banks like Switzerland’s Credit Suisse have required significant stabilization measures at the state level.
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