PacWest Bancorp PACW shares tumbled more than 50% in after-hours trading Wednesday, taking other bank stocks with it after a report that the company’s executives were weighing a possible sale. The report, from Bloomberg News, adds to the concerns over the financial stability of regional banks, following the collapse in March of Silicon Valley Bank and Signature Bank, and the sale of First Republic Bank to JPMorgan Chase & Co. JPM this week. PacWest’s shares have been diving this week in the wake of First Republic’s collapse…. Firms like First Republic Bank, Silicon Valley Bank and Signature Bank all failed recently after clients withdrew money en masse, in social media-driven bank runs linked to the rate hikes. Many regional banks like Silicon Valley Bank relied on deposits into high-dollar accounts over the past few years, which the firms then invested in securities like U.S. Treasuries. But Treasuries—long seen as safe investments—have lost value as interest rates increased, prompting concerns about the stability of banks, and in some cases leading to a rush of customer withdrawals. PacWest CEO Paul Taylor stated in an earnings release last week that “deposits stabilized in the latter part of March and rebounded nicely in April” following significant withdrawals in March after SVB and Signature Bank failed. Inflation has slowed to 5%—well below June’s 9.1% peak, but still far higher than the 2% rate the Fed has targeted. NN: The dominoes keep falling. And this is just the start. Its really simple. The ASSHOLE bankers made loans based on 1% money. And now the cost of money is OVER 5%. THEY LOANED OUT THAT MONEY AT 3% AVERAGE DURATION 7 YEARS. Which means not counting loans going bad they are losing at least 200 bases points…. Without constant bailouts they cannot survive. See the stupid money is now waking up and realiaizng they can get at least 4% on their money. You need to put your money in treasuries. Do not fear we know how to trade them.