$PacWest(PACW)$ What happened: PacWest Bancorp (PACW) took a big hit today with shares trading down by roughly 22% following the seizure of First Republic and its sale to JPMorgan Chase. Investors are concerned that the banking crisis is far from over, and the sale widens the gap between the "too big to fail" banks and super-regional and regional banks. This, coupled with the fact that JPMorgan Chase did not assume First Republic's corporate debt or preferred stock, has spooked investors. PACW, like other regional banks, will face pressure on their funding costs and earnings this year, and the sell-off today may have renewed focus on the banking sector and sparked concerns on whether more banks will fail. PacW's Earnings: PacW's
$First Republic Bank(FRC)$ Currently shareholders are making its last bet by buying into FRC in hopes of a positive announcement by JPM. Investors will likely be watching for further announcements from JPMorgan Chase regarding the acquisition of First Republic Bank and it's share conversion. It is a risky play as anything may happen post announcement.