[whell]

The Regional Banking Crisis is Expanding

Federal Reserve chair Jay Powell yesterday said that the U.S. banking system is "sound and resilient."

The big picture: It was akin to a sports team owner giving the coach a vote of confidence. If you're compelled to say it, things really aren't going well.

Driving the news: PacWest reportedly is exploring strategic options, including a possible sale, acknowledging "discussions are ongoing" with "several potential partners and investors."

Shares in the Los Angeles-based lender were down 71% on the year as of yesterday's market close, and got further routed at today's open.
Phoenix-based Western Alliance also is seeking help, per an FT report that sent its shares tumbling even further. [Update: Western Alliance is denying the FT report, adding that it has not hired advisors. Trading of its shares have been halted multiple times].
Behind the scenes: The FDIC isn't involved in either situation. At least not yet.

Remember, both Silicon Valley Bank and First Republic also at first sought private market solutions. Several other regional banks are also under stock price pressure, including Comerica and Zions Bancorp.