PacWest enters into an "asset diet" merger
By Isabelle Castro Margaroli
PacWest has been flailing for a stronghold in the aftermath of the March banking crisis.?Now, it may have been found.?
Yesterday the bank announced a merger with smaller lender, Banc of California, which some have said is likely to make the institutions more resilient.?
Both were hit with deposit outflows after the SVB collapse, with PacWest total deposits declining by $290 last quarter. The bank has continued to hold on - staving off analyst predictions of its ultimate demise.?
Saying that, as a result of the merger, PacWest will be no more - the two banks,?with an asset base of less than that of PacWest alone at the beginning of the year,?will come under the Banc of California name.?
The merger will allow the resulting entity to sell off low yield assets AND become smaller - an increasingly attractive goal for regional banks ahead of the Fed's?expected rise?in capital requirements.?
Some are saying the merger may light the fuse for other regional banks to do the same - combining forces to shed excess "weight".?
Is the banking ecosystem set to get a whole lot smaller...??
FEATURED
www.wsj.com, Private-equity firms Warburg Pincus and Centerbridge will provide the only external source of funding for the acquisition.
By Taktile, Discover the 10 things risk experts say are a must-have for their decisioning.
SPONSORED
By Provenir, Download the ebook today and reveal the secret to consumer lending across auto lending, mortgages, retail and point-of-sale, BNPL, and credit cards.
FROM FINTECH NEXUS
By Isabelle Castro Margaroli,?APIs drive much of financial services' digital revolution, but studies have shown they could also pose a significant security weakness.
PODCAST
领英推荐
This week Isabelle sat down with Eric Satz, founder of Alto to talk about alternative assets' place in IRA investment.
WEBINAR
July 26, 2pm ET
Alternative data has helped lenders price loans more accurately and expand their universe of potential borrowers while at...
ALSO MAKING NEWS
Apple and Goldman Sachs were in test runs before embarking publicly on one of the biggest-name partnerships ever between tech and finance. Engineers from the Silicon Valley giant and the Wall Street titan were pulling an all-nighter a few months before launch, scrambling to find a solution to a problem that had cropped up: Tim Cook couldn’t get approved for an Apple Card.
CEO Ryan McInerney touted the growth of Visa Direct and unveiled a fraud-scoring service called RTP Prevent, which is powered by artificial intelligence, while discussing the card network's earnings for its fiscal third quarter.
America is getting FedNow, the account-to-account instant payment infrastructure common in many other countries. It will change payments profoundly. Soon.
Brazil's Pix continues its runaway success, with more transactions made using the instant payments platform in the first quarter than credit and debit cards combined.
The initiative aims to help Italian banks, asset managers and financial institutions, including the $1 trillion banking group Intesa Sanpaolo, experiment with decentralized finance and security tokens.
Elon Musk’s grand vision is to turn Twitter into a one-stop shop for financial services. It’s hardly the first time a tech giant has sought to muscle in on Jamie Dimon’s turf.
The most comprehensive survey of the global investment industry on central bank digital currencies to date has shown both limited support and a lack of understanding of how a digital dollar, euro, yen or pound would work.