Shares of First Republic Bank tanked by more than 60% in premarket trading Monday morning as the effects of the Silicon Valley Bank collapse continue to be felt.
First Republic Bank, a regional bank, tried to sure up any concerns about its stability Sunday by saying it would be enhancing and diversifying its liquidity, but those statements do not appear to have eased concerns.Premarket trading shows the bank down to as little as $29.00 per share, compared with its Friday market closing value of $81.76 per share.
First Republic Bank announced new funding from the Federal Reserve and JPMorgan Chase on Sunday to give itself roughly $70 billion in unused liquidity in case mass numbers of customers decide to withdraw their money in a panic following SVB's sudden collapse.“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks.
Silicon Valley Bank was shut down by state regulators on Friday in the most notable bank failure since the 2008 financial crisis. Signature Bank, one of the main financial institutions for cryptocurrency firms, was also shut down by federal and state banking regulators on Sunday. President Joe Biden is set to address the country on the ways in which his administration will"maintain a resilient banking system" in a speech Monday morning.
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