Posted on 05/04/2023 1:00:27 PM PDT by ConservativeInPA
Western Alliance WAL.N is exploring strategic options including a potential sale of all or part of its business, the Financial Times reported on Thursday citing two people briefed on the matter.
The Arizona-based bank has hired advisers to explore its options, the report added, saying the bank's deliberations were at an early stage and might not come to anything.
Shares in Western Alliance had fallen 45% in volatile trading before being halted. The stock has shed more than 60% of its value so far this year.
Three U.S. regional banks have failed in the last two months, spurring widespread worries about the sector's stability and deepened concerns about lenders as nervous clients moved their money to bigger financial institutions.
(Excerpt) Read more at nasdaq.com ...
Look for at least one regional bank failure each day.
Holding to the pattern, it’s a Friday/weekend thing. Rumors start earlier in the week, trading is halted a couple of times, then comes an announcement on Friday. All weekend there is a flurry of behind the scenes activity to find a buyer of the few remaining good assets of the bank. The FDIC takes care of the depositors. The taxpayers get the bad assets.
Eventually, their will be no buyers and the FDIC will be broke, if it isn’t already.
Were these 2 articles written by the same person?
Fron Reuters:
Western Alliance WAL.N is exploring strategic options including a potential sale of all or part of its business, the Financial Times reported on Thursday citing two people briefed on the matter.
From Axios:
PacWest reportedly is exploring strategic options, including a possible sale, acknowledging “discussions are ongoing” with “several potential partners and investors.”
Axios was quoting the Reuters article.
“Holding to the pattern, it’s a Friday/weekend thing. Rumors start earlier in the week, trading is halted a couple of times, then comes an announcement on Friday. All weekend there is a flurry of behind the scenes activity to find a buyer of the few remaining good assets of the bank”
Does seem to be that pattern. Eventually there will be no mid-sized regional banks, just 5-10 “Too Big To Fail” banks and maybe just maybe a bunch of very small banks and credit unions.
I would image one of the smaller out of state based banks would buy WA. Go along East Camelback Rd in Phoenix and you will see a lot of bank names I never had heard of (Mid-First, BOK, PNC, CBIZ, 1stBank)
PNC is a big bank as a result of their purchase of the larger National City Bank with Obama money. Big here in Ohio and Pennsylvania.
“The FDIC takes care of the depositors”
The “new rules” are that the FDIC covers the first $250,000 of deposit accounts. Then the Federal Reserve covers the rest.
Correct. I was writing about the majority of depositors. I certainly hope after SVB businesses have changed their banking practices and are protected. When I had my business back in the 90’s the FDIC only insured up to $100k. I had a decent CPA and banker and my business was protected. It isn’t rocket science.
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