First Republic Bank Shares Plummet
Submitted by MAGA Student
Posted 13 days ago
There's been a lot of talk about the recent plummet of First Republic Bank shares, which dropped 26% despite a $30 billion rescue deal from some of the biggest financial institutions in the country. Wells Fargo, JPMorgan Chase, Bank of America, and Citigroup - they all gave $5 billion each to help out. Truist Financial and BNY Mellon also chipped in. That's a lot of dough, but share prices for First Republic Bank still fell over 80% to just under $26 per share on Friday morning. Ouch.
Apparently, the bank is super into wealth management, and they have a lot of customers with more than $250,000 in deposits that are not protected by the Federal Deposit Insurance Corporation. That makes for some nervous depositors who are likely to want to withdraw their money in times of crisis (like now). Analysts have downgraded First Republic Bank and speculate that they might need even more capital. They're exploring different options including selling off their portfolio, which sounds like bad news bears.
Source: dailywire.com
Apparently, the bank is super into wealth management, and they have a lot of customers with more than $250,000 in deposits that are not protected by the Federal Deposit Insurance Corporation. That makes for some nervous depositors who are likely to want to withdraw their money in times of crisis (like now). Analysts have downgraded First Republic Bank and speculate that they might need even more capital. They're exploring different options including selling off their portfolio, which sounds like bad news bears.
Source: dailywire.com
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