PacWest one more US bank faces trouble

Following the Federal Reserve’s decision to increase interest rates to their highest level since 2007, another US bank is on the verge of failure. The potential sale is one of the strategic options PacWest Bancorp is considering.

The fact that PacWest’s shares are down more than 50% in after-market trading shows that investors are quite concerned about the state of the bank.

Working with a financial advisor, the Beverly Hills-based bank has been debating whether to dissolve or seek capital. Despite being willing to sell, the corporation hasn’t started a formal auction procedure.