First Republic Bank (FRC) Halted For Nine Times In One Day, Fell Almost 45%
- First Republic Bank ($FRC) has been halted for the ninth time in one day, with eight halts occurring within the last hour.
- The bank received support from a group that includes JP Morgan, Bank of America, Wells Fargo, and Citi, and will receive up to $30 billion in deposits.
First Republic Bank (FRC) dropped 45% in one day, erasing $20B market cap. It previously secured extra liquidity from JPMorgan Chase and the Federal Reserve. First Republic Bank founder and CEO also reassures on capital and liquidity positions.
First Republic Bank (FRC) has been halted for the ninth time in one day, with eight halts occurring within the last hour. The stock fell almost 45% before rising 50% from its low. It was halted at $12.41 after trading at $130.00 just one month ago. Over $20 billion in market cap has been erased this month alone.
Previously, the bank received support from a group that included many of the most successful banks in the country. First Republic Bank will receive up to $30 billion in deposits from financial institutions such as JP Morgan, Bank of America, Wells Fargo, and Citi.
The collapses of Silicon Valley Bank and Signature Bank during the last week have raised concerns about the state of the financial system. Collaboration between banks to help one another could help alleviate these concerns. According to Bloomberg, the United States federal government plans to support failing banks.
First Republic Bank has secured extra liquidity from the Federal Reserve and JPMorgan Chase, improving and diversifying its financial position. The total untapped liquidity now surpasses $70 billion, with further liquidity available under the Federal Reserve’s Bank Term Financing Program.
First Republic Bank founder Jim Herbert and CEO Mike Roffler stated that the bank’s capital and liquidity positions are extremely robust, with the capital remaining far above regulatory standards.
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