US regional bank Western Alliance quashes report of exploring potential sale
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US regional bank Western Alliance's shares dipped 60 per cent after the now-quashed report which said the lender is exploring a possible sale.This comes after the Financial Times reported that Western Alliance was exploring strategic options which also included the sale of its whole business or at least part of it.
FT cited two sources while reporting on the matter. However later in the day, the bank has rubbished the report, according to Reuters."Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic options," the lender said.
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It added that the bank was "reaffirming its financial strength as well as its deposit growth guidance in response to recent industry events."
Western Alliance shares plunge
The shares of Western Alliance plunged to $17.22 at one point during the trade. The trading in the stock also halted multiple times, reported Reuters.
US bank collapses
By far, at least three US banks have collapsed in the last two months. A Los Angeles-based bank holding company PacWest Bancorp earlier said it is exploring strategic options, including a sale.
The shares went tumbling by 52 per cent after the markets were filled with anxiety over concerns if this will result in the collapse of yet another US bank.
It is pertinent to note that PacWest Bancorp had raised $1.4 billion from investment firm Atlas SP Partners in late March.
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First Bank Collapse
The latest bank that collapsed was First Republic Bank. The US banking regulators announced Monday of closing the crisis-hit San Francisco-based bank First Republic and selling off the lender's majority deposits of $93.5bn to JPMorgan Chase along with most of the assets.
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