Unlike several other mid-sized banks like Signature Bank and Silicon Valley Bank, First Republic managed to avoid collapse at the height of the banking crisis in March. It received assistance from big banks at the time, but this proved insufficient.

In the first-quarter earnings report shared on Monday, First Republic revealed disappointing numbers that included a deposit outflow of $100 billion. The bank’s stock lost 50% of its value in the aftermath and continued to fall as the week went by.

The government and First Republic advisors have discussed a number of potential rescue plans in recent days, including the creation of a “bad bank” and selling assets. However, none of those options seem to be viable, and the bank will enter the FDIC receivership.

“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic said in a statement provided to CNBC when reached out for a comment.

First Republic shares closed at $3.51 on Friday, down 43.30% compared to the day prior and 97.11% down year to date. The stock continued its fall in after-hours trading, dropping additional 41.03%

The post FDIC Set to Take Over First Republic After Rescue Attempts Fail appeared first on theprimarymarket.com.

According to an earnings report shared on Tuesday, First Republic has lost 40.8% of deposits during the first quarter of 2023. Following the collapse of several mid-sized banks like Silicon Valley Bank, customers feared that the same could happen to the First Republic and decided to take their money elsewhere. This resulted in $100 billion in net outflows.

There are now legitimate questions about whether the First Republic can keep itself from folding. The bank is reportedly considering a number of strategies to remain afloat, including selling some of its assets, increasing the number of insured deposits, and trimming its workforce.

Bloomberg reported on Tuesday that the creation of a “bad bank” is another option considered by First Republic executives. “Bad banks” usually buy bad loans and other non-performing assets from other financial institutions and then try to extract additional value from them.

First Republic’s stock closed at $16.00 per share on Monday before gradually sliding in after-hours trading. It opened at $12.24 on Tuesday morning and sank to a historic low of $8.10 by the end of the day. The bank’s shares are now 93.34% down year-to-date.

The post First Republic Stock Drops Almost 50% After Outflow of $100 Billion in Deposits appeared first on theprimarymarket.com.

According to the Wall Street Journal, First Republic now has $70 billion in unused liquidity while still being able to tap into Fed’s lending program.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” First Republic said in a statement released on Monday.

The last week saw two of the largest bank failures in U.S. history. Silicon Valley Bank was first to fold on Friday following a massive bank run, while crypto-friendly Signature Bank followed the suit later in the week.

Since the First Republic is considered to have a similar profile to the previous two, many depositors started fearing for their money. Some bigger clients have started diversifying their banking options, causing even more concerns. 

The funding from the Fed and JPMorgan was expected to alleviate some concerns, but that isn’t proving to be the case yet. First Republic’s shares plummeted 65 percent on Monday, and it wouldn’t be a surprise if the dip continues in the following days.

The post First Republic Bank Receives Additional Funding from Fed and JPMorgan appeared first on theprimarymarket.com.

Unlike several other mid-sized banks like Signature Bank and Silicon Valley Bank, First Republic managed to avoid collapse at the height of the banking crisis in March. It received assistance from big banks at the time, but this proved insufficient.

In the first-quarter earnings report shared on Monday, First Republic revealed disappointing numbers that included a deposit outflow of $100 billion. The bank’s stock lost 50% of its value in the aftermath and continued to fall as the week went by.

The government and First Republic advisors have discussed a number of potential rescue plans in recent days, including the creation of a “bad bank” and selling assets. However, none of those options seem to be viable, and the bank will enter the FDIC receivership.

“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic said in a statement provided to CNBC when reached out for a comment.

First Republic shares closed at $3.51 on Friday, down 43.30% compared to the day prior and 97.11% down year to date. The stock continued its fall in after-hours trading, dropping additional 41.03%

The post FDIC Set to Take Over First Republic After Rescue Attempts Fail appeared first on theprimarymarket.com.

According to an earnings report shared on Tuesday, First Republic has lost 40.8% of deposits during the first quarter of 2023. Following the collapse of several mid-sized banks like Silicon Valley Bank, customers feared that the same could happen to the First Republic and decided to take their money elsewhere. This resulted in $100 billion in net outflows.

There are now legitimate questions about whether the First Republic can keep itself from folding. The bank is reportedly considering a number of strategies to remain afloat, including selling some of its assets, increasing the number of insured deposits, and trimming its workforce.

Bloomberg reported on Tuesday that the creation of a “bad bank” is another option considered by First Republic executives. “Bad banks” usually buy bad loans and other non-performing assets from other financial institutions and then try to extract additional value from them.

First Republic’s stock closed at $16.00 per share on Monday before gradually sliding in after-hours trading. It opened at $12.24 on Tuesday morning and sank to a historic low of $8.10 by the end of the day. The bank’s shares are now 93.34% down year-to-date.

The post First Republic Stock Drops Almost 50% After Outflow of $100 Billion in Deposits appeared first on theprimarymarket.com.

According to the Wall Street Journal, First Republic now has $70 billion in unused liquidity while still being able to tap into Fed’s lending program.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” First Republic said in a statement released on Monday.

The last week saw two of the largest bank failures in U.S. history. Silicon Valley Bank was first to fold on Friday following a massive bank run, while crypto-friendly Signature Bank followed the suit later in the week.

Since the First Republic is considered to have a similar profile to the previous two, many depositors started fearing for their money. Some bigger clients have started diversifying their banking options, causing even more concerns. 

The funding from the Fed and JPMorgan was expected to alleviate some concerns, but that isn’t proving to be the case yet. First Republic’s shares plummeted 65 percent on Monday, and it wouldn’t be a surprise if the dip continues in the following days.

The post First Republic Bank Receives Additional Funding from Fed and JPMorgan appeared first on theprimarymarket.com.