First Republic drops 60%, leads decline in bank stocks despite government's backstop of SVB
Publishing timestamp: 2023-03-13 17:13:55
Summary
First Republic Bank received additional liquidity from the Federal Reserve and JPMorgan Chase, raising its unused liquidity to $70 billion. However, despite regulators' actions to backstop all depositors in failed banks and offer additional funding to troubled institutions, bank shares, particularly regional bank stocks, fell sharply. The decline came after a rush of withdrawals from SVB Financial forced the bank to close, highlighting the risk of large withdrawals for midsized banks with large uninsured deposit bases. While First Republic is not as concentrated in one industry as SVB was with technology, the bank does tend to cater to businesses and wealthy individuals who have large uninsured deposits.
Sentiment: NEGATIVE
Tickers: KEY, JPM, PACW, BAC, FRC, SBNY, SCHW, ZION, KRE, WAL, SIVB,
Keywords: pacwest bancorp, western alliance bancorp, markets, signature bank, spdr s&p regional banking etf, zions bancorporation na, jpmorgan chase & co, first republic bank, keycorp, svb financial group, san francisco, breaking news: markets, banks, business news, bank of america corp, financials, charles schwab corp,
Source: https://www.cnbc.com/2023/03/13/first-republic-drops-bank-stocks-decline.html