Breitbart By JOHN CARNEY
Shares of PacWest Bancorp tumbled sharply after Bloomberg reported late in the day Wednesday that the Beverly Hills-based bank has been “weighing strategic options.”
At one point overnight, shares were indicated down by more than 60 percent.
The bank has since said that its core deposits have grown since March and said it is in talks with several potential investors. Bloomberg reported that the bank has also considered a break-up or a capital raise. Unidentified sources told Bloomberg on Wednesday that the bank had not yet started a formal auction process.
“An outright sale has been hindered because there aren’t many potential buyers interested in the entire bank, which comprises a community lender called Pacific Western Bank and some commercial and consumer lending businesses, the people said. A potential buyer would also have to potentially book a big loss marking down some of its loans, the people said,” Blooomberg reported.
In an effort to calm markets, the company denied it was experiencing a bank-run or liquidity shortage.
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