Western Alliance bank denies potential sale as shares steeply drop

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Western Alliance bank has denied a Financial Times (FT) article stating that the bank was exploring a sale of all or part of its business, based on tip-offs by two anonymous sources who claimed to have been briefed on the matter.

“This story is absolutely false,” the Arizona-based bank told reporters in a statement after the article was published. “There is no truth in it.”

The sources told the outlet that it had hired advisers to consider its options — but that deliberations were in the beginning stage and therefore might not amount to any changes.

Western Alliance shares are down 50% since Monday, when First Republic became the latest major US bank to collapse in recent months. On Wednesday, Western Alliance stated that no unusual deposit outflows had occurred after JP Morgan acquired First Republic, likely in a bid to reassure investors.

Read more: First Republic Bank collapses, JP Morgan to take over ‘all deposits’

However, FT’s article seems to have had a negative impact. According to FT, shares were trading 45% lower after its piece was published.

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