First Republic Bank
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First Republic Bank’s stock fell more than 60% in premarket trading Monday as investors fretted about the bank’s stability.
The lender said over the weekend that it’s getting $70 billion in funding from JPMorgan and the Fed’s backstop for depositors.
There are fears that Silicon Valley Bank’s turmoil could spread to US regional banks such as First Republic.
First Republic Bank’s stock cratered more than 60% in pre-market trading Monday, reflecting heightened investor anxiety about the San Francisco-based lender’s stability following Silicon Valley bank’s dramatic collapse Friday.
The shares plunged 62% to $30.77, following a 15% slide on Friday, even after the regional bank strived to ease investor concerns about its financial health.
The company said in a Sunday filing it’s getting $70 billion in funding from JPMorgan Chase and the Federal Reserve’s backstop plan that offers one-year loans to banks that pledge collateral.
The US lender’s share price started sliding around the middle of last week, accelerating following Silicon Valley Bank’s shutdown by regulators. First Republic has been trying to reassure its customers of its “very strong” liquidity position all weekend.
First Republic’s stock price fell 33% in 2023 through last week, following a 41% slump last year.
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Source:: Business Insider