UPDATE: First Republic shares TANK despite $30 billion support

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As the most reliable and balanced news aggregation service on the internet, DML News App offers the following information published by REUTERS.COM:

March 17 (Reuters) – Shares of First Republic Bank (FRC.N) lost almost 33% on Friday, totaling a loss of around 80% in the last 10 sessions, despite a rescue package with $30 billion in deposits injected by large U.S. banks.

The beleaguered lender was in talks to raise money from other banks or private equity firms by selling new shares, the New York Times reported on Friday afternoon, citing three people with knowledge of the process. The bank could also negotiate to be sold, the report said. First Republic declined to comment.

Concerns about the bank’s health prompted top power brokers including U.S. Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and JPMorgan CEO Jamie Dimon to put together an unprecedented rescue deal on Thursday. The lender also said it had borrowed up to $109 billion from the U.S. Federal Reserve and an additional $10 billion from the Federal Home Loan Bank on March 9.

KBW Managing Director Chris McGratty released the following statement:

“The significance of the changes in (the company’s) balance sheet in just one week are staggering.. and along with the suspension of the common stock dividend, paints a very dire outlook for the company and shareholders.”

There were other drops too on Friday. Shares of Wall Street banks including JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N), Bank of America Corp (BAC.N) and Wells Fargo & Co (WFC.N) involved in the San Francisco-based lender’s rescue fell between 2% and 4%.

According to its annual report, First Republic had $212 billion in assets and $176.4 billion in deposits as of the end of 2022.

First Republic’s Twitter account announced Friday they plan to raise capital by selling shares privately.

To get more information about this article, please visit REUTERS.COM.

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