PacWest Bank faces deposit outflows and stock drop, secures $1.4bn from Atlas.

1 min read
Source: CNBC
PacWest Bank faces deposit outflows and stock drop, secures $1.4bn from Atlas.
Photo: CNBC
TL;DR

PacWest Bancorp's shares fell 10% after the bank disclosed it had lost over $6 billion in deposits during the recent squeeze on midsized banks, with venture banking deposits accounting for most of the decline. The bank said it had explored raising more capital but decided against it, and had borrowed over $16 billion from various government-related programs and received $1.4 billion in cash from a financing facility with Atlas SP Partners to manage the deposit outflows. PacWest's update comes after Treasury Secretary Janet Yellen said federal regulators would consider backstopping uninsured deposits at certain banks if there was a risk of contagion from large withdrawals.

Share this article

Want the full story? Read the original reporting

Read on CNBC