Western Alliance Drops on Charge-Off, Jefferies Legal Action (1)

(Updates with shares, commentary.)

Western Alliance Bancorp shares are down over 10% in premarket trading after the bank filed a complaint in New York Supreme Court against Jefferies Financial Group. Jefferies informed the bank that $126.4 million owed to its bank under a forbearance agreement would not be paid as agreed.

• Western Alliance plans to offset impact with $50 million in securities gains
• Bank charged off entire remaining loan balance, matched by provision of same amount
• Western Alliance projects another profitable quarter despite the charge-off
• Jefferies Financial Group shares are down around 3% in early hours trading
  • NOTE: In ...