PacWest's dividend cut causes mixed reactions among regional bank stocks.

Regional bank stocks rebounded premarket Monday, with PacWest Bancorp leading the charge after it cut its dividend to 1 cent per share late Friday to preserve capital. PacWest CEO Paul Taylor called the cut a "prudent step" given economic uncertainty, banking sector volatility, and potential regulatory changes to capital requirements. Meanwhile, the of a June 1 deadline to resolve the debt ceiling debate looms over the economy, a political threat amplified by banking sector fragility.