Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

First Republic Stock Drops 17% after Receiving $30 Bln from Largest US Banks

Fri 17 Mar 2023 | 05:43 PM
Taarek Refaat

Shares of First Republic Bank fell 17% in early trading Friday after stalling briefly as the $30 billion in deposits pumped out by large US banks failed to address investor concerns, according to Reuters.

Shares of JPMorgan Chase & Co, Citigroup, Bank of America, Wells Fargo & Co, Goldman Sachs and Morgan Stanley participating in the First Republic bailout fell between 1.7% and 3.3%.

Fears of the bank's imminent collapse prompted an unprecedented deal put together by US Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and JPMorgan CEO Jamie Dimon on Thursday.

First Republic, which has suspended its dividend, is caught up in a widening banking crisis triggered by the collapse of two medium-sized US lenders over the past week.

The bank's stock has lost about 72% of value this month.

It said it borrowed up to $109 billion from the US Federal Reserve between March 10 and 15.

Moody's said that the loans speak of "funding and liquidity pressures on banks, driven by weak depositor confidence." The rating agency downgraded its outlook on the US banking system to negative earlier this week.