PacWest stock drops 23% following deposit loss.

PacWest, a California-based regional bank, saw its stock plunge 23% after losing 9.5% of deposits last week due to heightened customer fears about the safety of their deposits. The bank pledged $5.1 billion to the Federal Reserve's discount window to increase its liquidity position for potential deposit outflows and reduce its dividend to strengthen its financial position. The bank has also been considering a sale or capital raise, which has contributed to investor scrutiny and pressure on the stock. Other regional banks, such as Western Alliance, have also experienced pressure from depositors and investors in recent months.