PacWest Bancorp, Western Alliance post steep losses after First Republic deal

Regional bank stocks are moving deeply into the red on Tuesday, the day after JPMorgan Chase & Co. JPM said it’s acquiring First Republic Bank FRC as a way to shore up confidence in the U.S. banking system. Meanwhile, Morgan Stanley MS is reportedly planning to lay off 3,000 workers. PacWest Bancorp PACW is down 29%, Western Alliance Bancorp WAL is falling 24.6% and Metropolitan Bank Holding Corp. MCB is down by 23.8%. The KBW Nadaq Bank Index BKX is off by 3.7%, the Financial Select Sector SPDR Fund XLF is lower by 2.2% and the SPDR S&P Regional Banking ETF KRE is lower by 5.2%. JPMorgan fell 1% and Goldman Sachs Group…