Earlier this week, the president claimed that, following the collapse of yet another bank, First Republic, that the worst was over and the banking system "is stable."
It's not. In fact, far from it.
"Western Alliance stock plummeted and partially recovered on Thursday as news outlets published reports that the regional bank would consider a sale, a claim the firm denied," The Daily Wire reported on Thursday.
Meanwhile, First Horizon and TD Bank have mutually decided to abandon their $13 billion merger that would have created the sixth-largest bank in the US. The decision comes amidst the ongoing turmoil in the country's regional lenders, as First Horizon's share price has fallen by about 40% in the past few months, significantly below the $25 per share offered by TD when the takeover was announced in February 2022.
Following the announcement of the abandonment of the deal, First Horizon's stock price closed at $15.05 per share on Wednesday and dropped an additional 36% on Thursday, CNN reported further.
The Daily Wire noted further that the recent market turbulence follows the collapses of several medium-sized banks, including First Republic Bank, Silicon Valley Bank, and Signature Bank, as customers with balances exceeding the Federal Deposit Insurance Corporation (FDIC) threshold withdrew their funds. As for Western Alliance, based in Phoenix, and serving clients throughout the western U.S., two insiders have claimed that the bank is considering options like a full or partial sale, according to a report from the Financial Times.
Western Alliance claimed that the allegations made in the article were “absolutely false” while adding that the institution is planning legal action over the story. “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,” a spokesperson said in a statement to CNN. “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.”
"First Horizon is a regional lender in the southeast United States and would have helped Canada’s TD expand south of the border. But regional banks have been losing the confidence of investors and customers since the March collapse of Silicon Valley Bank and Signature Bank," CNN noted separately. "On Monday, a third regional bank, First Republic, failed and JPMorgan purchased most of its assets. A fourth, PacWest Bank confirmed earlier Thursday that it’s looking for a financial lifeline."
First Horizon CEO Bryan Jordan, in a statement, claimed: “While today’s announcement is unfortunate and unexpected, First Horizon will continue on its growth path operating from a position of strength and stability."
On Thursday, Western Alliance's shares dropped by almost 34%, even as regulators repeatedly halted trading of the company's stock, The Daily Wire continued.
Western Alliance's deposits have also fallen more than 11% from $54 billion to $48 billion between the end of December and the end of March, according to a first-quarter earnings report. PacWest, which has seen a decline of 17% over the same period, also saw market volatility on Thursday and announced that it would consider the possibility of a sale and other options to maximize shareholder value, the outlet added.
It seems clear that the country is on the brink of yet another massive economic and financial institution upheaval just 15 years or so removed from the last near-economic death incident following a massive housing mortgage collapse.
Our leaders continue to allow their big bank donors and masters to operate with irresponsibility and a guarantee that they'll be bailed out of their bad decisions. And keep in mind, these failures are coming during Joe Biden's disastrous regime.
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