Other regional banks making a recovery on Friday included Western Alliance, which gained as much as 49pc. “The tension between poor market sentiment and strong liquidity at regional banks is difficult to reconcile as investors take a draconian view of banks’ capital and operating models,” Bloomberg Intelligence analyst Herman Chan said. While some investors have warned of further losses, others have argued the plunge has gone too far. The crisis of confidence in the banking sector and anxiety over its stability has plagued regional lenders, as investors grow concerned over large unrealised losses on bond investments and high exposure to real estate lending. Shares in several US regional banks have suffered deep losses this week as contagion fears intensified following J P Morgan’s rescue of Californian lender First Republic. It came after concerns about the health of US regional banks deepened as PacWest confirmed that it was holding talks with potential investors about strategic options, which reportedly included a possible sale or capital raise. It marks a significant recovery for the Beverly Hills-based lender, following a six-day selloff that saw its shares tumble over 70pc, and 51pc on Thursday alone, its worst one-day loss on record. PacWest's share price increased by as much as 88pc today, marking its biggest intraday gain ever. US lender PacWest has led a rebound US regional banks stocks after investors cautioned that some of this week’s bruising sell-off was overdone.

She Rode The Rails by Beverly Adam