Some time ago, the sudden collapse of Silicon Valley banks caused a "financial storm" in the global banking industry, and even Credit Suisse, a major international bank, could not escape from it.。Now, in addition to the Silicon Valley Bank, the Signatory Bank and the First Republic Bank, another bank in the United States is "shaky."。

On Wednesday (May 3) after the U.S. stock market, the U.S. Western Pacific Bank (PacWest Bancorp) after the market fell nearly 60%, the stock price is below the $3 mark, compared to this year's high of 30.07 U.S. dollars have fallen more than 10 times。

 

 

"Dying Struggle"

 

In response to the after-hours plunge, Westpac said it had increased deposits since March and confirmed it was in talks with several potential investors seeking to reassure the market after the share price plunged, making it a new focus on the health of regional U.S. lenders.。

In a statement on Wednesday, Westpac said: "Following the sale of First Republic Bank and other news, the bank has not experienced an unusual flow of deposits.。"Our cash and available liquidity remained stable, exceeding uninsured deposits."。"

The bank added that "the company has recently been approached by several potential partners and investors and discussions are ongoing."。"The Company will continue to evaluate all options to maximize shareholder value."。"

But Westpac's one-pass explanation does not appear to have appeased the market, with most market watchers still deeply concerned about its status and the industry。

The selloff came just hours after Federal Reserve Chairman Jerome Powell said authorities were closer to containing the turmoil that has led to the collapse of four banks this year.。Powell said the government's seizure of First Republic Bank and its sale to JPMorgan Chase & Co was "an important step in drawing a line under that period of severe stress" for regional lenders.。

Tim Waterer, chief market analyst at KCM Trade, said the bank's statement "brought little confidence to the market."。"Despite Jerome Powell's best efforts to reassure markets, there is no sign that the banking crisis is over.。"

While Westpac has been considering a spin-off or capital increase, the formal auction process has not yet begun, according to people familiar with the matter。Direct sales have been hampered by not many potential buyers interested in the entire bank, according to people familiar with the matter.。And potential buyers could also make huge losses, reducing some of their loans。

 

The Fed is to blame.？

 

On Wednesday, local time, the Fed raised interest rates by another 25 basis points, the 10th rate hike since March last year and the third rate hike of the year.。While Powell hinted that this could be the last rate hike, he also left the door open for officials to continue raising borrowing costs while inflation persists.。He also strongly opposed market expectations that the Fed will cut interest rates before the end of the year.。

After a year of interest rate hikes, the bank's unrealized losses are estimated at 1..$84 trillion, commercial real estate troubles add to pain。These pressures have exacerbated the market's focus on small banks, which often have few resources to protect themselves and are only at risk of failure in the event of a crisis.。

On Monday, JPMorgan Chase bought First Republic Bank in a government-led deal, making it the fourth U.S. bank to fail this year, after Silver Gate Capital Corp., SVB Financial Group's Silicon Valley Bank and Signature Bank.。

U.S. small lenders are struggling as rising interest rates reduce the value of long-term investments while increasing the cost of financing。This has prompted depositors to move cash into higher-yielding money market funds.。Investors are also concerned that modern technology allows customers to quickly withdraw money from troubled institutions, funneling deposits instead to the largest banks so far untouched by the turmoil.。

Critics of the banking system have called on the Federal Deposit Insurance Corporation to raise the insurance cap, which is often as high as $250,000 for most accounts.。No changes have been announced, although regulators are considering expanding deposit insurance coverage。

In fact, Pacific West Bank is not the only U.S. regional bank to be attacked in recent days。Western Alliance Bancorp also fell more than 20 percent after hours, while Comerica Inc..) and Zions Bancorp (Zion Bancorp) both fell more than 10% after hours.。

In response, Arlines Western Bank also said on Wednesday that the bank had not yet detected an unusual deposit outflow and reiterated its guideline that deposits will grow quarter by quarter.。

Financial heavyweights, including hedge fund billionaire Bill Ackman and former Federal Reserve Bank of Dallas governor Robert Kaplan, have warned of more pressure on the banking sector.。Ackerman said ahead of the statement from Westpac that he believes the entire U.S. regional banking system is at risk。

Ackerman also said on Twitter: "People's confidence in financial institutions is built up over decades and will be shattered in a few days.。"。"With every domino down, the next weakest bank begins to falter."。"