(Image source from: Bizjournals.com)
Three US regional banks failed in the last two months, which created concerns in Western Alliance Bank on the lenders after an article was published in Financial Times. One of the Western Alliance lenders Beverly Hills-based PacWest admitted that they have approached several potential partners and investors and were discussing for options to sell some of their shares to raise the capital. PacWest share was down up to 50%.
FT reported that Western Alliance Bank has brought advisors to look into strategic options and although they reported that the discussions are in the early stages, western alliance shares fell sharply. Following the Financial Times article, Western Alliance bank denied the rumors and said they dint heir any strategist and looking for any options of sale and also cleared that every word in the article is false and they are going to take legal action. But the damage was done to the bank share, which fell up to 41% on early Wednesday after NASDAQ opened.