Regional banks in the United States continue to struggle, despite comments by Federal Reserve Chair Jerome Powell yesterday that the US banking system is “sound and resilient.” Western Alliance (NYSE: WAL) is the latest such bank to falter, with the Financial Times reporting this morning that the bank was exploring a potential sale, which it later denied.
Issuing a release mid day today, the bank stated that the claims by the Financial Times are “categorically false in all respects.” Western Alliance followed this up by stating that “There is not a single element of the article that is true. Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic options.”
After the reports, the company saw its equity sink as low as 61.6% on the day, hitting a low of $11.35 per share. The equity has since rebounded to just a 31% decline on the day, despite the company categorically denying the reports.
“It is shameful and irresponsible that the Financial Times has allowed itself to be used as an instrument of short sellers and as a conduit for spreading false narratives about a financially sound and profitable bank,” Western Alliance continued.
The Financial Times had reported that the bank was exploring a potential sale on all or parts of its business, based on reports from two people briefed on internal discussions.
Information for this briefing was found via Edgar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
