Western Alliance slams reports on potential selling, stops shares loss
2 Min Read
The US bank stabilized at 29 percent share loss after diving to 61 percent following a report saying that the bank is looking for a buyer.
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A screen displays the logo and trading info for Western Alliance Bancorporation on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 14, 2023. (Reuters)
Western Alliance Bancorp denied on Thursday reports claiming that it was looking for a potential buyer that pushed the bank's shares down by over 60 percent.
Trading in the Arizona bank's stock was halted several times on Thursday over intense volatility, only recovering to a 29 percent share-value loss after releasing a denial of the “categorically false in all respects” report.
"Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic options," the lender said.
Read more: 200 US banks are under risk: Study
Before the report, the bank which holds $65bn worth of assets was trading down 26 percent.
In less than two months, three US regional banks have collapsed, raising deep market concern over the stability of the American banking system and leaving regulators struggling to stabilize investors' fears.
JPMorgan's takeover of failed First National Bank that was brokered by regulators has failed to restore client confidence.
Western Alliance was only the latest of a series of falling US banks.
Shares of PacWest Bancorp recorded an all-time low after a nearly 50 percent dive on Thursday after the bank announced a day earlier that it will be exploring strategic options. PacWest was attempting to avoid walking into the same fate as the other banks by preemptively looking for financial solutions, Reuters reported.
Read more: Lending rules tightened in US amid fear of further bank failures
Following the collapse of Silicon Valley Bank (SVB), New York's Signature Bank, and Silvergate Bank, which marked a historic failure in the US banking system, many have attributed the collapses to soaring interest rates. However, on Wednesday the Fed announced a 25 bps hike to 5.25 percent.
