US bank seeks buyer as confidence crisis spreads

Another US bank is seeking a financial lifeline as a crisis of confidence in the country's banking sector continues.

PacWest said it is considering its options it said it had been approached by potential buyers and investors, sending its share price plunging.

Confidence in the banking industry - especially mid-sized lenders - has been shaken a series of failures.

Some banks have experienced difficulties because of a steady rise in interest rates.

Central banks have been lifting borrowing costs to combat rising prices, or inflation.

On Wednesday, the US Federal Reserve lifted the key interest rate again, this time to 5.25% which is the highest since 2007.

Unlike competitors who have collapsed in recent weeks, PacWest said it had not seen large numbers of customers rushing to take their money out.

But on Thursday evening, it admitted that it was considering its options after being "approached by several potential partners and investors". It said "discussions are ongoing".

The statement sent PacWest's share price tumbling with investors worried that it "will be the next domino to fall", according to analyst Susannah Streeter, at Hargreaves Lansdown.

Its shares have lost almost 90% of their value since the US regional banking crisis started in March with the collapse of Silicon Valley Bank and Signature Bank.