PHOENIX — Phoenix-based Western Alliance Bancorporation (NYSE: WAL) sought to ease concerns about its status as its stock value tumbled along with that of several other banks amid fears sparked by the failures of Silicon Valley Bank and Signature Bank.
On Wall Street, Western Alliance’s share price dropped by more than 84% in the morning, but it regained lost ground through the day Monday and ended up closing down 47.06%, at $26.12. Track the stock here.
But that still was the largest one-day drop in the bank’s history, breaking the previous record of 39.4% from Sept. 19, 2008, during the Great Recession.
Early in the day Monday, Western Alliance President and CEO Kenneth Vecchione sought to ease fears about his institution’s vulnerability amid more general fears of a banking contagion sparked by the failures of Silicon Valley Bank, or SVB, and New-York-based Signature Bank, both which were closed by federal regulators.
Vecchione said in a regulatory filing Monday that the bank’s liquidity is healthy.
“As of this morning, cash reserves exceed $25 billion and are growing, while deposit outflows have been moderate,” Vecchione said in the filing. “Including accounts eligible for pass-through insurance, insured deposits exceed 50% of total deposits.”
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