Deepening US banking crisis

PacWest Bancorp has become the latest American bank to be caught up in the worst crisis in the sector since 2008. Shares in the bank nosedived in after-hours US trading on Wednesday over reports the Los Angeles-based lender was mulling a sale. The bank has confirmed it is in talks with potential partners and investors about strategic options, following a 60% stock rout. People familiar with the matter told Bloomberg that PacWest has been considering a breakup or a capital raise, but a buyer would potentially have to book a big loss marking down some of the bank’s loans. The selloff followed US Federal Reserve Chair Jerome Powell’s announcement that authorities were closer to containing the turmoil that has gripped the banking sector.