Major bank failure prompts sell-off and contagion fears amid uncertain future

First Republic Bank was seized by regulators and sold to JPMorgan Chase after struggling since the collapses of Silicon Valley Bank and Signature Bank in March.
PacWest Bancorp's stock price plunged nearly 50% as the bank explores strategic options, fueling worries of a worsening banking crisis.
Other regional bank stocks tumbled amid concerns of banking contagion.
The Federal Reserve's interest rate hikes have put pressure on banks with exposure to long-term, low-interest rate loans.
Analysts and lawmakers are calling for regulatory changes to stabilize the banking system as the crisis threatens economic growth.