Western Alliance CEO Calls Cantor 'One-Off Issue'-Bank Rebounds From Fraudulent Loan

Benzinga

Western Alliance said its $98M disputed loan is an isolated case after setting aside $30M in reserves. The bank found no broader issues in its loan review, easing investor concerns as shares rose alongside peers.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Western Alliance Bancorp said Wednesday that $98 million loan in the center of last week's

00:06sell-off is an isolated issue, according to CNBC.

00:09The bank reported third-quarter results showing $30 million in reserves for possible losses

00:13tied to the Canter Group loan, which it said was under litigation for alleged fraud.

00:17CEO Kenneth Vecchione told analysts the incident prompted a full review of its note finance

00:22portfolio, verifying titles and liens for loans over $10 million, with no further issues

00:27found.

00:27Analysts pressed management on lending oversight and exposure to non-depository financial

00:31institutions.

00:33Western Alliance said most of those loans are backed by low-risk residential mortgages.

00:37Shares rose 2% as the bank in Piers Lake Zions posted stronger net interest income and improving

00:42credit metrics.

00:44For all things money, visit Benzinga.com.

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