Shares of PacWest Bancorp (NASDAQ:PACW) are trading higher amid a rebound after the stock fell over 50% after the bank this week issued an update confirming reports it was weighing strategic options.
What Happened?
PacWest Bancorp on Wednesday issued a business update, confirming reports indicating it was weighing strategic options. The bank said it has been approached by potential partners and investors and “will continue to evaluate all options to maximize shareholder value.”
The news pressured the broader financial sector this week, with the SPDR S&P Regional Banking ETF (NYSE:KRE) falling on Thursday.
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The broader financial sector has been volatile this year following the collapse of Silicon Valley Bank and First Republic, among others. This has caused uncertainty over US financial health and weighed on the regional banking space.
Shares of PacWest saw a sharp rebound on Friday, rising 81% to $5.75.
