PacWest Bancorp, the parent company of Pacific Western Bank, is in talks with Atlas SP Partners and other investment firms to boost its liquidity position, reported Reuters, citing sources.
The California-based bank is weighing several options to bolster its finances but there is no certainty that a deal will materialise, the sources said.
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Details of the potential capital infusion could not be known.
Requests for comment from Atlas SP and PacWest did not elicit a response.
PacWest is a community bank with headquarters in Los Angeles that primarily serves small and venture-backed businesses.
At the beginning of this month, it had $41bn in assets.
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By GlobalDataThe development comes shortly after the collapse of California-based Silicon Valley Bank and Signature Bank, which is based in New York.
Following SVB’s unsuccessful attempt to raise capital last week, which triggered a wider bank run, PacWest’s shares have fallen by 60%.
The amount of deposits lost by PacWest in the bank crisis was not immediately evident.
Another US lender, First Republic Bank is reeling under the crisis triggered by the failure of SVB and Signature.
Eleven major US banks have agreed to infuse a total of $30bn in the troubled First Republic Bank, which is considering strategic options including a sale to boost its liquidity.
First Republic’s rescuers include Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY-Mellon, PNC Bank, State Street, Truist and US Bank.
