Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

First Republic's Stock Falling Strongly despite Efforts to Calm Markets

Tue 21 Mar 2023 | 05:18 PM
Taarek Refaat

In light of the extreme fluctuations witnessed by the First Republic Bank for the second week in a row, the bank’s shares fell in closing transactions yesterday by more than 45%, with the continued tension of the markets due to the recent crisis in the banking sector.

The value of one share of First Republic Bank reached $12.18.

Credit rating agency S&P Global downgraded First Republic Bank from BB+ to B+ for the second time this week, moving the bank into speculative territory, as it warned that the $30 billion bailout package would not be enough to rescue the the bank.

US credit rating agency Moody's downgraded on Sunday the troubled US bank First Republic from B2 to Baa1, which means that Moody's has thus placed the Bank in the highly speculative and risky area.

It is reported that although First Republic Bank obtained a rescue package on the previous Thursday from 11 other US banks, the bank's shares continued to decline, and despite this, the US Treasury, the US Federal Reserve and the Federal Deposit Insurance Corporation FDIC emphasized the flexibility of the banking sector within the country.