Banking: PacWest stock jumps after lender says it’s ‘fundamentally sound’ but will slash dividend to a penny a share

PacWest Bancorp’s stock rallied Monday after the lender said the business remains “fundamentally sound” and released plans to reduce its dividend to build up capital reserves.

PacWest Bancorp said it would cut its quarterly dividend to a penny a share to stockholders of record as of May 15, payable on May 31. In the previous quarter, PacWest paid a dividend of 25 cents a share.

PacWest…