Will PacWest Bancorp be the next financial institution to fail?
Investors certainly think that this is the next regional entity to crumble.
On Tuesday, PacWest tanked as much as 36 percent, and saw its trading halted several times on volatility.
The good news is that most of its deposits are not uninsured. But it does suffer the same problems of too much debt and a poor investment portfolio.
Overall, regional bank stocks cratered, with companies like Western Alliance down 16 percent. SPDR S&P Regional Banking ETF (KRE) dropped as much as seven percent.
The question is now: Will the Federal Reserve raising interest rates by 25 basis points tomorrow add to the pressures brewing in the banking system?
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