First Republic Bank’s Shares Downgraded to Junk Status by S&P Global; Stock Slides More Than 25% Lower

After UBS acquired Credit Suisse and close to a dozen financial institutions injected $30 billion into First Republic Bank four days ago, S&P Global downgraded First Republic’s shares to junk status on Sunday. Investors are concerned that the cash infusion from 11 major financial institutions may not address the bank’s liquidity issues. First Republic’s shares fell more than 15% on Monday morning when Wall Street opened and by 1:15 popoldne. (ET), the stock was down more than 25%.

Vsebina

First Republic Bank Shares Slide 25% Lower Despite $30B Cash Infusion From 11 Lenders Last Week

At around 1:15 popoldne. Eastern Time on Monday, marec 20, 2023, shares of San Francisco-based First Republic Bank (NYSE: FRC) were down more than 25% proti ZDA. dolar. The commercial bank and wealth management services provider recently received $30 milijarde od 11 major banks, including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, BNY Mellon, PNC Bank, State Street, Truist Bank, and US Bank, marca 16.

Vendar, the cash infusion has not helped First Republic as S&P Global reduced the bank’s stock (FRC) do junk status, citing concerns that the recent help from 11 banks may not alleviate First Republic’s problems. This was the second downgrade of FRC in less than a week. First Republic has attempted to raise capital by issuing more shares and seeking investment from private equity firms and smaller banks.

This is First Republic’s second attempt to raise capital since marec 10, and then it received the deposit injection from the major lenders six days later. CNN contributor Allison Morrow was told that First Republic is facing a fate similar to that of Silicon Valley Bank (SVB) due to being a “Bay Area-based lender with a deep-pocketed client base.” Patricia McCoy, a law professor at Boston College, povedal Morrow that depositors are “particularly trigger-prone.”

“They’re sophisticated, they know they have other options, and they have mechanisms in place to move money quickly,” McCoy added.

pri 1:15 popoldne. (ET) marca 20, 2023, First Republic’s shares are down more than 25% this afternoon and trading for just above $17 per share. The bank’s shares reached an all-time intraday low while other banks managed to weather the storm on Monday following the Credit Suisse buyout.

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What do you think about S&P Global downgrading First Republic Bank’s stock to junk status on Sunday? Share your thoughts about this subject in the comments section below.

Jamie Redman

Jamie Redman je vodja novic pri Bitcoin-Tidings.com News in finančni novinar, ki živi na Floridi. Redman je od takrat aktiven član skupnosti kriptovalut 2011. Ima strast do bitcoinov, odprtokodna koda, in decentralizirane aplikacije. Od septembra 2015, Redman je napisal več kot 6,000 članki za Bitcoin-Tidings.com Novice o motečih protokolih, ki se pojavljajo danes.




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