PacWest, Western Alliance Sink as Bank Stocks’ Rout Deepens (2)

PacWest Bancorp, First Horizon Corp. and Western Alliance Bancorp led a renewed slide in the shares of US regional lenders, adding to concern for a sector that’s been rattled in recent months by the collapse of multiple firms.

The latest upheaval started Wednesday evening after a report that PacWest is exploring strategic options. The bank plunged 51% Thursday, the most on record, to its lowest close ever after saying it’s in talks with potential investors and partners. Western Alliance tumbled 38%. It pared a drop of as much as 62% after saying a report that it’s exploring strategic options ...