Benzinga - Western Alliance Bancorp (NYSE: WAL) shares are extremely volatile Thursday. The stock plunged following reports that the bank was exploring a potential sale, but shares are bouncing back after the company denied the reports.
What Happened: Western Alliance shares were halted several times in early trading as the stock faced heavy selling pressure on the heels of a Financial Times report indicating the bank was exploring a potential sale.
Western Alliance issued a press release shortly after the article surfaced, denying its accuracy.
"The Financial Times' report today that Western Alliance is considering a potential sale of all or part of its business is categorically false in all respects. There is not a single element of the article that is true. Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic options," the company said in a statement.
"It is shameful and irresponsible that the Financial Times has allowed itself to be used as an instrument of short sellers and as a conduit for spreading false narratives about a financially sound and profitable bank."
Western Alliance said it's considering all legal options in response to the Financial Times piece.
The news comes after PacWest Bancorp (NASDAQ: PACW) announced it is weighing strategic options, which reportedly includes a potential sale. The PacWest developments came just days after JPMorgan Chase & Co (NYSE: JPM) acquired a substantial majority of assets and assumed deposits and other liabilities of First Republic from the FDIC.
Multiple banks have now collapsed in what constitutes the biggest banking crisis since 2008. Broader concerns around the banking sector have continued to pressure bank financials.
WAL Price Action: Western Alliance shares were down 35.8% at $19 at the time of publication, according to Benzinga Pro.
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