Banking Crisis 2023: Before Buying or Selling Bank Stocks, Do This

By Jason Hall – May 5, 2023 at 5:02AM

NASDAQ: PACW

PacWest Bancorp

The sharp rise in interest rates has flipped the banking model on its head for some banks.

So far in 2023, we have seen three midsize regional banks be seized by the FDIC and a fourth voluntarily wind down its operations. Now PacWest Bancorp (PACW) is potentially on the ropes. What should bank investors do? In this video, Motley Fool contributor Jason Hall explains a great place to start, whether you're trying to figure out if you should sell certain banks or you're looking to go on the offensive and buy.

*Stock prices used were from the morning of May 4, 2023. The video was published on May 5, 2023.

Jason Hall has positions in Axos Financial, Bank Of N.t. Butterfield & Son, Central Pacific Financial, Live Oak Bancshares, SoFi Technologies, and StoneCo. The Motley Fool has positions in and recommends Axos Financial, Bank Of N.t. Butterfield & Son, Central Pacific Financial, Live Oak Bancshares, and StoneCo. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.