US bank Pacwest in distress: Contacts continue with potential buyers
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The bank made a statement after the news yesterday that it is working with a financial advisor and considering its strategic options, including sales.
The bank’s statement said it is evaluating strategic asset sales, including $2.7 billion in debt from the Fed’s Bank Term Financing program, which will be available in the third quarter of this year, as Pacwest previously announced.
Emphasizing that this sale continues as planned, the statement said, “In addition, within our normal practices, the company and the board of directors continue to evaluate strategic options. There have been several investors and partners who have recently shown interest in the company, and discussions are continuing with them. The company aims to maximize shareholder value. It will continue to consider all options to remove it.” expressions were used.
In the statement, it was stated that there was no unusual deposit outflow from the bank after this week’s sale of First Republic Bank, which was in crisis, and other related news.
In the statement, which reported that customer deposits totaled $28 billion as of May 2, an increase compared to March 31, 2023, the statement said, “Our cash and current liquidity remain strong. At the beginning of this year, we will strengthen our community bank focus to maximize shareholder value and increase our operational efficiency. We have announced a strategy. We are implementing this strategy and are accelerating our objectives within the scope of this strategy against the recent fluctuations in the banking sector.” it was said.
PacWest shares lost nearly 55 percent in value after yesterday’s news.
– Three banks went bankrupt in 2 months in the USA
The problems in the banking sector, which started with the bankruptcy of Silicon Valley Bank (SVB) and Signature Bank at the beginning of March, came to the fore again with the sharp decline in the shares of First Republic Bank, which revealed deposit losses in its first quarter balance sheet announced last week.
The US Federal Deposit Insurance Fund announced earlier this week that First Republic Bank was shutting down and its assets would be acquired by JPMorgan Chase. First Republic Bank became the third bank in the US to go bankrupt within 2 months after the sharp rise in interest rates.
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