Western Alliance stock plummeted and partially recovered on Thursday as news outlets published reports that the regional bank would consider a sale, a claim the firm denied.
The volatility comes days after First Republic Bank imploded and weeks after Silicon Valley Bank and Signature Bank similarly failed as customers with balances above the Federal Deposit Insurance Corporation threshold at the three medium-sized banks rushed to withdraw their funds. Two people briefed on discussions at Western Alliance, which is based in Phoenix, Arizona, and serves clients throughout the western part of the country, claimed the firm is exploring options such as a full or partial sale, according to a report from the Financial Times.
Western Alliance later commented that the assertions in the article were “absolutely false” and said the company would pursue legal action over the story.
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