What's Going On With PacWest Stock Today?

PacWest Bancorp PACW stock is down Tuesday, trading down more than 36%. The move comes amid increased uncertainty in the regional banking space after First Republic Bank collapsed, leading to JPMorgan Chase & Co JPM acquiring its deposits and assets. 

PacWest’s stock began the week trading right around $10 a share. By Tuesday morning, the stock was down more than 35% to $6.41. Other names in the regional banking space, like Western Alliance Bancorporation WAL were also getting hammered.

The SPDR S&P Regional Banking ETF KRE was trading down about 6%. First Republic’s collapse was the largest bank failure since 2008, bigger than Silicon Valley Bank or Signature bank. 

Investors are spooked that First Republic’s failure could be a signal of more problems to come in the regional banking sector, explaining the sell-off in PacWest and Western Alliance’s stock.