For fintech startups that partner with regional banks, the day’s events sent yet another shockwave through the industry. From the earliest days of the crisis, the banks providing savings and loans services to so-called neobanks have been under pressure from shareholders and depositors.
Shares of Los Angeles-based PacWest dropped more than 50% Thursday afternoon, and Phoenix-based Western Alliance’s stock dropped over 35%, adding to losses that followed Monday’s collapse and sale of First Republic Bank to JP Morgan Chase. Since then, the stocks of both banks have slumped more than 60%.
PacWest said in a statement that “the company will continue to evaluate all options to maximize shareholder value.” Western Alliance denied reports that it was looking to sell itself, in a statement to PitchBook.
Both banks have partnerships with several fintech…