SBNY - Why Bank Stocks Like PacWest and First Republic Are Falling Hard (Again) on Friday
2023-03-10 14:28:55 ET
Here we go again. Following serious drubbings on Thursday, several bank stocks are losing lots of ground again today. Shares of PacWest Bancorp (NASDAQ: PACW) , Signature Bank (NASDAQ: SBNY) , and First Republic Bank (NYSE: FRC) are down 33%, 24%, and 23%, respectively, as of as of 1:31 p.m. ET Friday, with trading of all three tickers halted at one point this morning in an effort to curb runaway selling.
Don't look for any company-specific reasons these stocks are on the defensive today, however. You won't find them.
Rather, blame the ripple effect from the meltdown of SVB Financial Group (NASDAQ: SIVB) , also known as Silicon Valley Bank. This banking outfit largely serving California's technology sector is essentially collapsing after being unable to raise the $2.25 billion in capital it says it needed. The market is presuming other banks and lenders of this ilk are in similar fiscal trouble.
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Why Bank Stocks Like PacWest and First Republic Are Falling Hard (Again) on Friday