Global site navigation

Shares of First Republic plunge after report of possible sale
Business and Economy

Shares of First Republic plunge after report of possible sale

by  AFP 2 min read
Shares of First Republic tumbled again as regional banks face scrutiny following the failure of Silicon Valley Bank
Shares of First Republic tumbled again as regional banks face scrutiny following the failure of Silicon Valley Bank. Photo: JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

PAY ATTENTION: Celebrate South African innovators, leaders and trailblazers with us! Click to check out Women of Wonder 2022 by Briefly News!

Shares of First Republic Bank nosedived on Wall Street Thursday following a report that the embattled California bank is considering strategic options, including a possible sale.

Shares were off around 30 percent in early trading, the latest rout in a bruising stretch that has seen it lose around three-quarters of its value in a week.

Founded in 1985, First Republic is the 14th largest US bank by assets, with $212 billion at the end of 2022.

Headquartered in San Francisco, First Republic is also present on the East Coast, including in New York and Florida, as well as in western states such as Washington and Wyoming.

The bank is known for private banking and wealth management. As a result of its clientele, the bank has a large percentage of uninsured deposits that has kept it under scrutiny after the failures of Silicon Valley Bank, Signature and Silvergate.

Read also

South Korea to build 'world's largest' chip centre

S&P Global Ratings said 68 percent of the bank's deposits are from accounts of more than $250,000, the level automatically guaranteed by US regulators.

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly News on your News Feed!

"We believe the risk of deposit outflows is elevated at First Republic Bank despite the actions of federal banking regulators and the bank actively increasing its borrowing availability to mitigate risk associated with the bank failures over the last week," S&P said Wednesday as it downgraded the rating on First Republic.

Citing sources close to the matter, Bloomberg reported that First Republic was considering strategic options that include a sale.

On Sunday, First Republic announced that it had obtained additional liquidity from the Federal Reserve and JPMorgan Chase.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: