PacWest Bank's Future Uncertain as Stocks Plummet and Sale Option Weighed

Regional bank stocks continue to slide, with PacWest leading the way down 40% in premarket trading after announcing a strategic review that could include a potential sale. First Horizon also fell 40% after the regional lender and TD Bank terminated their merger agreement due to uncertainty around regulatory approval. Other notable declines included Western Alliance and Zions Bancorp. The SPDR S&P Regional Banking ETF (KRE) was down 3.7%. These drops show that investors still lack confidence in the stability and long-term profit outlook of regional banks.