https://sputnikglobe.com/20230504/western-alliance-rejects-shameful-report-its-looking-to-sell-amid-us-banking-crisis-1110105143.html
Western Alliance Rejects 'Shameful' Report It's Looking to Sell Amid US Banking Crisis
Western Alliance Rejects 'Shameful' Report It's Looking to Sell Amid US Banking Crisis
Sputnik International
The bank shot back after a report by Financial Times claimed that Western Alliance was considering a sale.
2023-05-04T23:05+0000
2023-05-04T23:05+0000
2023-05-04T23:01+0000
economy
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us federal reserve bank
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Western Alliance denied on Thursday the “shameful and irresponsible” US report that it was considering a potential sale amid a raging banking crisis that has has rattled the financial sector. Claims that Western Alliance was weighing its options came not long after shares of the regional bank fell by 36% (bringing shares down 68% for the year) and contributed to a trade of $19 per share.The bank, which has $65 billion in assets, said they are presently exploring legal options against the offending outlet. The since-rejected report earlier caused the Dow Jones Industrial Index to fall 400 points, or 1.2%, and the S&P 500 to tumble 0.9%.The report came after Kenneth A. Vecchione, Western Alliance’s chief executive officer, had attempted to reassure investors that Alliance’s deposit levels had started climbing in recent weeks. Investor fears have yet to be calmed even after the First Republic Bank was acquired by JPMorgan Chase earlier this week after an auction by the Federal Deposit Insurance Corporation (FDIC). First Republic's failure came as a result of a dominion effect that started with the collapse of Silicon Valley Bank, which marked the second largest bank failure in US history. Western Alliance on Wednesday said total deposits were $48.8 billion as of Tuesday, up from $48.2 billion on Monday.Federal Reserve Chair Jerome Powell has assured the public that the American banking system remains “strong and resilient” but admitted on Wednesday that the US may be facing a potential recession. Moments after news broke that the Fed would be conducting its tenth interest rate hike, Powell underscored that officials would "continue to closely monitor" that banking crisis.
https://sputnikglobe.com/20230504/trading-halted-in-shares-of-western-alliance-latest-us-bank-in-trouble-after-pacwest-1110096945.html
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western alliance, bank failure, us banking system, financial times
western alliance, bank failure, us banking system, financial times
Western Alliance Rejects 'Shameful' Report It's Looking to Sell Amid US Banking Crisis
Reports that the Arizona-based bank was exploring a potential sale arose earlier Thursday after insiders leaked to US media that the firm had hired advisers to explore its options in selling.
Western Alliance denied on Thursday the “shameful and irresponsible” US
report that it was considering a potential sale amid a raging banking crisis that has has rattled the financial sector.
Claims that Western Alliance was weighing its options came not long after shares of the regional bank fell by 36% (bringing shares down 68% for the year) and contributed to a trade of $19 per share.
“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. 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,” a spokesperson told an American news outlet in an email.
The bank, which has $65 billion in assets, said they are presently exploring legal options against the offending outlet. The since-rejected report earlier caused the Dow Jones Industrial Index to fall 400 points, or 1.2%, and the S&P 500 to tumble 0.9%.
The report came after Kenneth A. Vecchione, Western Alliance’s chief executive officer, had attempted to reassure investors that Alliance’s deposit levels had started climbing in recent weeks.
Investor fears have yet to be calmed even after the First Republic Bank was acquired by JPMorgan Chase earlier this week after an auction by the Federal Deposit Insurance Corporation (FDIC). First Republic's failure came as a result of a dominion effect that started with the collapse of Silicon Valley Bank, which marked the second largest bank failure in US history.
Western
Alliance on Wednesday said total deposits were $48.8 billion as of Tuesday, up from $48.2 billion on Monday.
Federal Reserve Chair Jerome Powell has assured the public that the American banking system remains “strong and resilient” but admitted on Wednesday that the US may be facing a potential recession. Moments after news broke that the Fed would be conducting its tenth interest rate hike, Powell underscored that officials would "continue to closely monitor" that banking crisis.
