Key takeaways:
- First Republic Bank’s stock price fell more than 70% in early trading on Monday after the company said it had added more cash to its reserves.
- The sudden collapse of Silicon Valley Bank and Signature Bank has caused a wave of fear in the markets, with investors and depositors concerned about the stability of the US banking system.
- The infusion of capital came from the Federal Reserve and JPMorgan Chase, First Republic said, and CEO Mike Roffler sought to reassure investors and depositors in a statement on Sunday.
Shares of First Republic Bank, a regional bank based in San Francisco, fell more than 70% in early trading on Monday after the company said it had added more cash to its reserves. The bank, which has $213 billion in assets and 7,200 employees, had sought to reassure investors and depositors that its “capital and liquidity positions are very strong, and its capital remains well above … US stocks opened lower Monday as traders digested the plan by federal banking regulators to make the depositors in the failed Silicon Valley Bank whole and provide additional funding for other banks.
The stock price of First Republic Bank cratered on Monday despite its attempts to quell investor fears after the sudden collapse of Silicon Valley Bank and Signature Bank. The infusion of capital came from the Federal Reserve and JPMorgan Chase, First Republic said.
The market reacted negatively to the news, with stock futures popping on Sunday after the deal was announced, but quickly falling on Monday as fear rippled through markets that the government may not have done enough to restore confidence in the US banking system.
CEO Mike Roffler sought to reassure investors and depositors in a statement on Sunday, saying the bank “continues to fund loans, process transactions and fully serve the needs of clients.” Shares of US banks, particularly regional banks, dropped in early trading Monday.
The sudden collapse of Silicon Valley Bank and Signature Bank has caused a wave of fear in the markets, with investors and depositors concerned about the stability of the US banking system. Despite attempts by First Republic Bank to reassure investors and depositors, the stock price fell more than 70% in early trading on Monday. The bank said it had added more cash to its reserves, with the infusion of capital coming from the Federal Reserve and JPMorgan Chase. CEO Mike Roffler said the bank is still able to fund loans, process transactions and serve the needs of clients.
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