PacWest shares plummeted by 50pc in after hours trading in New York amid talks of a rescue for the US regional bank.

The bank has instructed boutique investment bank Piper Sandler to help it explore strategic options including a sale, according to Bloomberg. It comes after the Federal Deposit Insurance Corporation (FDIC) seized control of First Republic Bank on Monday before securing a sale to JP Morgan.

It comes six weeks after PacWest said it had shored up its access to cash by raising $1.4bn via a lending facility from Apollo-backed investment firm Atlas SP Partners.

Shares in fellow regional US bank Western Alliance also fell by a quarter in after-hours trading as investors remain concerned about the worst banking crisis since 2008. The turmoil was triggered by the collapse of Silicon Valley Bank, Signature Bank and crypto-focused lender Silvergate in March.

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