PacWest Bancorp PACW stock fell 4% Wednesday after it disclosed a drop in despots since the start of the year and canceled plans to raise capital after successfully lining up loans from a private investor as well as the federal government. PacWest said it continues to have “solid liquidity” after borrowing from the federal government and getting a $1.4 billion injection from Atlas SP through a new senior asset-backed financing facility. The bank also canceled plans for a capital raise due to “current volatility in the market and depressed market prices for regional bank stocks, as well as the availability of other options to enhance capital.” The bank disclosed that it has $11.4 billion in available cash, which is up from $10.8 billion in available cash as of March 17. The bank said its available cash on hand exceeds total estimated uninsured deposits of $9.5 billion as of March 20. The bank said it “proactively” took steps to bolster its liquidity including $3.7 billion of borrowings from the Federal Home Loan Bank, $10.5 billion of borrowings from the Federal Reserve Discount Window, and $2.1 billion in Bank Term Funding Program borrowings on March 20. The bank said its venture banking unit has opened 130 new accounts opened since March 9.
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