First Republic falls nearly 50% to record low after reporting massive deposit drop
Publishing timestamp: 2023-04-25 16:03:33
Summary
First Republic Bank's stock fell over 49% and hit a record low after losing about 40% of its deposits during the first quarter. The bank's deposits shrank by 40.8% during the quarter as customers pulled out their money following the collapse of Silicon Valley Bank. The bank is pursuing strategic options to reshape its balance sheet after the massive deposit flight, and other banks and federal officials are looking for solutions to stabilize the regional bank. One potential path would be for larger banks to buy some of First Republic's assets and for the regional bank to then raise additional equity. First Republic is also looking to sell up to $100 billion of loans and securities to restructure its balance sheet.
Sentiment: NEGATIVE
Tickers: FRC,
Keywords: breaking news: markets, banks, business news, first republic bank, markets, earnings, investment strategy,