![]() Therefore, it’s no guarantee that Western Alliance will continue impressing onlookers with rising deposits.įinally, arguably the biggest headwind against trust banks centers on the investors. However, with money held in savings accounts suffering a negative real return – due to inflation being stubbornly high – depositors have every reason to consider alternatives. True, Western Alliance posted an increase in total deposits. However, with that said, depositors simply don’t have much incentive to trust the banks. To be sure, a depletion of deposits combined with banks holding onto assets that were suddenly worth less (a casualty of the sharp rise in rates) contributed to this year’s banking crisis. That’s according to data cited by CBS News back in September 2022. In particular, while the Federal Reserve has been raising the benchmark interest rate since last year, savings account rates lag considerably. Moving beyond specific headwinds impacting WAL stock, investors should also note that the banking sector faces waning incentives among clients. However, investors might not view Western Alliance’s denials as credible, given the aforementioned controversy. ![]() To be sure, the basketball incident and the implosion of WAL stock aren’t directly related. As well, he stepped down as chair of the bank as the NBA controversy escalated. However, Sarver had to sell the Suns for creating a hostile environment at the pro sports club. According to the article, Robert Sarver – former owner of the Phoenix Suns NBA basketball franchise – ran Western Alliance for much of the past two decades. Moreover, what the FT report mentioned was that WAL stock suffers from a tangential credibility problem. They certainly don’t need to add to the headwinds. That certainly doesn’t seem like a bank about to go into a selloff.”ĭespite the denial of the sale rumor and the threat of legal action regarding the allegedly false article, it begs the obvious question: why would a respected journalism outfit risk broadcasting fake news? As the BuzzFeed ( NASDAQ:BZFD) layoffs recently demonstrated, online content distributors face massive challenges. Steve Anderson pointed out that WAL’s “total deposits had risen from $47.6 billion at the end of March to $48.8 billion in the most recent numbers. Wrong, Western Alliance emphatically stated. As TipRanks contributor Steve Anderson stated, “One such option, naturally, was a full sale to someone else.” That came off the back of management dispelling a Financial Times (FT) report that Western Alliance had called in a slate of advisors to look at several competitive options. On paper, WAL stock might not seem like such a poor wager, given the aforementioned powerful performance. WAL Stock Moves on Dispelled Rumors, but It’s Still Ugly Fundamentally, WAL stock faces extremely difficult credibility issues ahead. ![]() However, risk-averse investors should probably stop playing games with the troubled enterprise. ![]() After all, shares bounced over 49% higher on May 5. Stripped of all other context, beleaguered banking firm Western Alliance Bancorporation ( NYSE:WAL) might seem an intriguing platform for speculation. ![]()
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