Shares of California-based regional US bank PacWest tumbled on Wall Street yesterday after it announced that 20% of its deposits had “melted” and ruled out a short-term capital increase, AFP reported.
As of 7:40 p.m. yesterday Bulgarian time, the bank’s shares were trading with an 11.38% decrease on the New York Stock Exchange.
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The holding company that controls Pacific Western Bank announced in a statement late yesterday that the bank has seen its deposit base decline by 20% since the end of last year. This contraction was largely due to withdrawals from the bank on deposits of investment companies, whose deposits fell overall by 43%.
PacWest also said it received an “injection” of $1.4 billion in liquidity from ATLAS SP Partners.
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That company was created in February by private equity giant Apollo Global Management, taking over some of Credit Suisse’s securitization business, which the bank parted ways with in November.
As of the end of 2022, PacWest was the 53rd largest bank in the United States by assets valued at $41 billion. The bank is based in Los Angeles and has a “presence” mainly in California, but also in North Carolina and Colorado.
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