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The recent failures of Silicon Valley Bank, Signature Bank (OTC: SBNY), and First Republic (NYSE: FRC) and the poor performance of other regional banks serve as a reminder of the underappreciated risks of investing in bank stocks.
PacWest Bancorp (NASDAQ: PACW) shares are in the spotlight Wednesday after the stock led regional banks lower on Tuesday on the heels of the third major bank collapse of 2023, which increased selling pressure on the banking sector.
Western Alliance Bancorporation (NYSE: WAL) shares are trading lower by 24.42% to $27.55 Tuesday morning amid ongoing uncertainty in the regional banking sector.
The S&P 500 closed slightly lower on Monday ahead of this week’s interest rate decision. The Fed is likely to raise interest rates by an additional 25 basis points on Wednesday.