S&P cut its credit rating to B+ from BB+ on Sunday after first lowering it to junk status just last week.
agreed to deposit $30 billion
in First Republic to shore up confidence in regional banks. But the bank also suspended its dividend and said it had just about $34 billion in cash through March 15, not counting the new deposits. "The deposit infusion from 11 U.S. banks, the company's disclosure that borrowings from the Fed range from $20 billion to $109 billion and borrowings from the Federal Home Loan Bank increased by $10 billion, and the suspension of its common stock dividend collectively lead us to the view that the bank was likely under high liquidity stress with substantial deposit outflows over the past week," stated S&P in its note Sunday.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why First Republic shares went on a rollercoaster rideWhy First Republic shares went on a rollercoaster ride. The stock moved so much because there was no news about the bank over the course of the intervening hours.
Read more »
First Republic likely to weather second S&P downgrade within a week: ReportFirst Republic Bank is reportedly poised to face another downgrade by S&P Global Inc even after a group of 11 banks scrambled to stabilize it.
Read more »
S&P cuts First Republic deeper into junk, says $30 billion infusion may not solve problemsFirst Republic Bank saw its credit ratings downgraded deeper into junk status by S&P Global, which said the lender's recent $30 billion deposit infusion from 11 big banks may not solve its liquidity problems.
Read more »
First Republic Bank Looms Large for U.S. Regulators After Credit Suisse SaleAfter UBS agreed to purchase Credit Suisse, Treasury Secretary Janet Yellen and Fed Chair Jerome Powell sought to reassure investors in the U.S. where First Republic Bank has become U.S. officials’ main concern
Read more »
First Republic tumbles 25% as Credit Suisse takeover ignites banking crisis fearsFirst Republic shares tank 25% after UBS deal to buy Credit Suisse underscores risks of a banking crisis
Read more »