Financial Crisis: The simultaneous failure of many regional banks in the United States has shaken the world financial markets. Data shows that on Wednesday, following JPMorgan‘s acquisition of First Republic Bank, regional banking stocks continued their downward trend. The share prices of PacWest Bancorp (PACW • NASDAQ) fell by about 12% in pre-market trading. Will there be another bank run at the end of this week, though, is still an open question.
Who Will Join The Bank Run Next?
According to reports, JPMorgan Chase (JPM.N) said it would purchase the majority of the troubled First Republic Bank’s (NYSE: FRC) assets. Banking equities experienced strong selling as opposed to a relief bounce.Investors became aware of the decreasing share price of PacWest Bancorp. It dropped by a troubling 28% to a session low of $6.55, a record. However, over the past five days, the share price of PacWest has decreased by nearly 45%.
