by ZeroHedge News Staff at ZeroHedge
Earlier today, when Jerome Powell openly lied to the American People during the FOMC press conference stating without a hint of irony that the US banking system is “sound and resilient”…
https://twitter.com/HumanEvents/status/1653864923955617792?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1653864923955617792%7Ctwgr%5Ecc8a4b9339e63a09f8be803503a284eb50061093%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.zerohedge.com%2Fmarkets%2Fhere-we-go-again-troubled-california-bank-pacwest-craters-60-report-it-seeking-buyers-or
…we balked: how could this former lawyer lie so brazenly to the American people, the narrator wondered, when in just the past few weeks we had seen over half a trillion in bank failures, making the current bank failure episode even worse than the global financial crisis?
POWELL: U.S. BANKING SYSTEM IS SOUND AND RESILIENT
Narrator: we just had over half a trillion $ in bank failures in the past month pic.twitter.com/YvhloFIGIX
— zerohedge (@zerohedge) May 3, 2023
Well, as usual, the narrator was right, because while Powell’s lies were still ringing in our ears, the next regional bank collapse was on its say.
Shortly after the close, Bloomberg reported that another regional, California-based bank (of course), PacWest Bancorp., was weighing a range of strategic options, including a sale.
The Beverly Hills-based bank – whose financial conditions it appears has been far worse than the Fed, which just hiked another 25bps, thought – has been working with a financial adviser and has also been considering a breakup or a capital raise, according to Bloomberg sources. While it is open to a sale, the company hasn’t started a formal auction process.
According to the report, “an outright sale has been hindered because there aren’t many potential buyers interested in the entire bank, which comprises a community lender called Pacific Western Bank and some commercial and consumer lending businesses, the people said.” And similar to SVB and FRC, “a potential buyer would also have to potentially book a big loss marking down some of its loans, the people said.”
On Tuesday,…
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