Banking Crisis Deepens as PacWest Faces Potential Sale.

Regional banks, including PacWest and Western Alliance, are struggling to convince investors of their financial soundness as their stock prices continue to plunge and short sellers bet on their demise. The banks, which have relatively stable deposit bases and smaller assets than the banks that previously collapsed, are facing a crisis of confidence that could spook depositors and upend their ability to operate normally. The Federal Deposit Insurance Corporation is considering changes to its rules to provide higher levels of insurance to business payment accounts. Meanwhile, executives at Zions have invested nearly $2 million in the bank's falling stock, and PacWest has been approached by several potential partners and investors.