Western Alliance Bancorp denies report of financial institution exploring sale

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(Reuters) -Western Alliance Bancorp on Thursday denied a report that mentioned it was exploring a possible sale that despatched the lender’s shares down greater than 60%.

“Western Alliance isn’t exploring a sale, nor has it employed an advisor to discover strategic choices,” the lender mentioned.

The financial institution’s shares had been down 42% at $17.22, with buying and selling within the inventory halted a number of instances.

Earlier within the day, the Monetary Instances reported that Western Alliance was exploring strategic choices together with a possible sale of all or a part of its enterprise, citing two folks briefed on the matter. The financial institution mentioned the report was false.

Three U.S. regional banks have failed within the final two months, spurring widespread worries concerning the sector’s stability and dashing regulators’ hopes of a fast restoration.

Regulators had hoped that the sale of First Republic Financial institution to JPMorgan Chase & Co earlier this week would draw a line underneath a lingering banking turmoil.

On Wednesday, PacWest Bancorp mentioned it was exploring strategic choices. The financial institution was attempting to keep away from the destiny of different regional lenders by proactively discovering an answer that bolsters its funds, a supply instructed Reuters.

PacWest shares tumbled practically 50% to a document low on Thursday.

(Reporting by Manya Saini and Niket Nishant in Bengaluru; Enhancing by Krishna Chandra Eluri and Shounak Dasgupta)