Bank Denies Sale Rumors, Shares Plummet
Despite Western Alliance denying the story as "absolutely false," shares dropped 45% after the Financial Times reported the potential sale. PacWest, another regional bank, also announced plans to explore its options.
Confidence in U.S. Regional Banks Remains Low
The recent regulator-brokered takeover of First Republic by JPMorgan Chase failed to restore confidence in the U.S. regional banking sector, leading to heavy selling pressure on their shares this week.
Powell Reassures Health of the Banking System
US Federal Reserve Chair Jay Powell attempted to ease concerns about the turmoil, stating that conditions had "broadly improved" since early March and that the banking system as a whole was "sound."
LATEST: Western Alliance Bank has hired financial advisers to examine its options, according to the Financial Times.
— Paryte (@Parytecom) May 4, 2023
Western Alliance's History with Robert Sarver
Former Phoenix Suns owner Robert Sarver, who was forced to sell the team due to a hostile environment investigation, led Western Alliance for the past two decades. He stepped down as the bank's chair last year amidst the NBA controversy.
