- PacWest Bancorp's (PACW) stock took a dive Wednesday after the lender announced that, owing to the current market prices of regional banks, it had decided against a capital raise. However, the institution asserted that their choice reflects their faith in their financial strength and their dedication to ensuring long-term stability and success.
- The stock market didn't seem too enthused, with the stock dropping 9.5%. PacWest was quick to add that they had more accessible cash than uninsured deposits, reassuring the market that FDIC-insured deposits surpassed 65% of its total deposits as of March 20.
Why it matters
Pacwest Bancorp tapped into several federal facilities to keep liquidity flowing, drawing $3.7 billion from the Federal Home Loan Banks system, $10.5 billion from the Federal Reserve Discount Window, and $2.1 billion from the Bank Term Funding Program—all on March 20. To top it off, they also secured $1.4 billion from investment firm Atlas SP Partners.