Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries PacWest sells loan portfolio for over $3.5B By: FOX Business June 26, 2023 at 13:59 PM EDT PacWest Bancorp confirmed on Monday the sale of a $3.54 billion loan portfolio to asset firm Ares Management after the LA-based bank began selling real estate loans in May. PacWest Bancorp on Monday confirmed the $3.54 billion sale of a loan portfolio to asset firm Ares Management.The U.S. regional lender said the decision to offload the portfolio was to boost liquidity amid the Federal Reserve’s relentless rate hike strategy, which has subsequently increased the risk of more loans going bad as banks reduce their lending exposure to beleaguered sectors like commercial real estate.FED EXPLORING WAYS TO SPEED UP BANK OVERSIGHT, STRENGTHEN STRESS TESTSEarlier this month, the Fed warned that tighter U.S. credit conditions following the spring banking crises could hinder economic growth this year.In its semi-annual monetary report to Congress, the central bank noted that bank lending conditions have "tightened notably" over the past year due to the rapid increase in interest rates and the recent turmoil within the financial sector. "Evidence suggests that the recent banking-sector stress and related concerns about deposit outflows and funding costs contributed to tightening and expected tightening in lending standards and terms at some banks beyond what these banks would have reported absent the banking-sector stress," the report said.FIRST CITIZENS BANK CUTTING JOBS AT FAILED SILICON VALLEY BANKMeanwhile, Ares said its alternative credit arm bought PacWest's loans using funds from Barclays.Los Angeles-based PacWest also sold its real estate lending unit and a large portion of its real estate loans in late May.EXPERT WARNS LANDLORDS OVER PROGRESSIVE POLICIES ALLOWING SQUATTERS WREAK HAVOC: 'LAW IS NOT ON YOUR SIDE'Through the sale of such loans, some regional banks in the U.S. are now trying to shore up capital and build investor confidence following the recent banking crisis.The transaction will improve liquidity and capital as the bank implements a strategy to focus on relationship-based community banking, PacWest CEO Paul Taylor said in a statement.The regional bank already took in $2.01 billion in proceeds from the sale of its lender finance loan portfolio, according to a filing with the Securities and Exchange Commission.BLACKROCK FILES FOR BITCOIN ETF WITH SECIts lender finance arm provided loans to small business lenders, commercial real estate lenders and consumer lenders.As banks rush to sell, private equity firms and other asset managers are taking advantage of the situation. In April, Blackstone said the crisis offered a "golden moment" to expand its credit business.GET FOX BUSINESS ON THE GO BY CLICKING HEREReuters and FOX Business' Megan Henney contributed to this report. Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
PacWest sells loan portfolio for over $3.5B By: FOX Business June 26, 2023 at 13:59 PM EDT PacWest Bancorp confirmed on Monday the sale of a $3.54 billion loan portfolio to asset firm Ares Management after the LA-based bank began selling real estate loans in May. PacWest Bancorp on Monday confirmed the $3.54 billion sale of a loan portfolio to asset firm Ares Management.The U.S. regional lender said the decision to offload the portfolio was to boost liquidity amid the Federal Reserve’s relentless rate hike strategy, which has subsequently increased the risk of more loans going bad as banks reduce their lending exposure to beleaguered sectors like commercial real estate.FED EXPLORING WAYS TO SPEED UP BANK OVERSIGHT, STRENGTHEN STRESS TESTSEarlier this month, the Fed warned that tighter U.S. credit conditions following the spring banking crises could hinder economic growth this year.In its semi-annual monetary report to Congress, the central bank noted that bank lending conditions have "tightened notably" over the past year due to the rapid increase in interest rates and the recent turmoil within the financial sector. "Evidence suggests that the recent banking-sector stress and related concerns about deposit outflows and funding costs contributed to tightening and expected tightening in lending standards and terms at some banks beyond what these banks would have reported absent the banking-sector stress," the report said.FIRST CITIZENS BANK CUTTING JOBS AT FAILED SILICON VALLEY BANKMeanwhile, Ares said its alternative credit arm bought PacWest's loans using funds from Barclays.Los Angeles-based PacWest also sold its real estate lending unit and a large portion of its real estate loans in late May.EXPERT WARNS LANDLORDS OVER PROGRESSIVE POLICIES ALLOWING SQUATTERS WREAK HAVOC: 'LAW IS NOT ON YOUR SIDE'Through the sale of such loans, some regional banks in the U.S. are now trying to shore up capital and build investor confidence following the recent banking crisis.The transaction will improve liquidity and capital as the bank implements a strategy to focus on relationship-based community banking, PacWest CEO Paul Taylor said in a statement.The regional bank already took in $2.01 billion in proceeds from the sale of its lender finance loan portfolio, according to a filing with the Securities and Exchange Commission.BLACKROCK FILES FOR BITCOIN ETF WITH SECIts lender finance arm provided loans to small business lenders, commercial real estate lenders and consumer lenders.As banks rush to sell, private equity firms and other asset managers are taking advantage of the situation. In April, Blackstone said the crisis offered a "golden moment" to expand its credit business.GET FOX BUSINESS ON THE GO BY CLICKING HEREReuters and FOX Business' Megan Henney contributed to this report.
