Yesterday, PacWest shares were in free fall, which led to a temporary suspension of their trading after bank announced an outflow of approximately 9.5% of deposits during the previous week. This is one of the regional banks. USA found in the eye of a cyclone after it collapsed Silicon Valley Bank In the middle of March.

However, the panic seems to have intensified in the last week – after its collapse. First Republic– so he announced that he was negotiating with potential buyers. PacWest noted that it was able to offset the exodus of depositors with the liquidity it already had. At the moment, liquidity is $15 billion, and the amount of uninsured deposits is $5.2 billion.

Of course, the picture he painted is very different from the previous update he made just last week. In particular, on May 4, he stated that there were no unusual flows in his deposits and that they had actually increased since the end of March.

Consequently, PacWest’s stock fell, leading Wall Street’s banking indexes to decline. By the end of yesterday, it fell by about 20%, and at the beginning of the session, the drop reached even 30%. It is noted that since the beginning of the year, the shares have lost at least 70% of their value.

Overall, deposits at PacWest declined 16.9% in the first quarter of the year. In this context, he announced that he would continue with the strategic sale of assets in order to improve his balance sheet.

The bank announced an outflow of approximately 9.5% of deposits over the past week.

Meanwhile, JP Morgan chief executive Jamie Dimon predicted that regulators would overreact to the turmoil that swept the industry in March, causing the collapse of four regional banks.

“I think that the situation with banks will worsen. More control, more rules and more requirements,” Dimon told Bloomberg. “If you go overboard with some of the rules, requirements, and regulations, some of the smaller banks tell me they have more people complying than lending.”

Dimon, who is the only CEO of a major bank to remain in office since the 2008 crisis, has also played a central role in the recent turmoil that has gripped the industry in recent months. In his famously blunt style, he criticized the authorities and other bankers, threw a lifeline at First Republic Bank, and eventually bought it when efforts to save it proved insufficient.

However, when he said after the deal that “this part of the crisis is over,” he failed to convince investors that the banking sector is strong. The KBW Regional Banking Index fell 12% after JP Morgan’s takeover of First Republic was announced.

However, the big banks have been largely unaffected by the pressures that smaller companies in the industry have faced. JP Morgan stock has risen this year and the bank posted an unexpected increase in deposits in the first quarter.