First Republic Bank shares plunged Friday after reports that it was likely to be seized by federal financial regulators, putting it in danger of becoming the third bank to fail since then.
Federal Deposit Insurance Corporation likely to buy ailing local bank CNBC reportnote that hopes that other lenders can intervene to save the First Republic are fading.
First Republic Bank shares, which topped $200 in 2001, fell 43% to $3.54 in late afternoon trading. The stock has fallen 97% this year.
Investors said earlier this week that depositorsConcerns about the stability of the First Republic have grown during last month’s crisis. The outflow of the fund was “unprecedented,” bank officials said on Monday’s earnings call.
The troubled bank said it now plans to sell assets, rebuild its balance sheet and lay off a quarter of its roughly 7,200 employees by the end of 2022. The bank will also shrink its headquarters. It will cut its footprint, cut executive compensation “significantly” and eliminate “unnecessary” projects, executives said Monday.
In a rare move, 11 of the country’s largest financial institutionsWith last month’s deposits to support troubled banks.
San Francisco-based Silicon Valley Bank, with $210 billion in assets at the time, was the 16th largest bank in the United States, but fear of potential losses prompted many depositors to withdraw their funds. Acquired by state regulator in March. A signing bank in New York collapsed just days after a similar bank run.
Friday’s reportSVB’s stunning failure is believed to be the result of a combination of extremely poor bank management, weak regulation and lax government oversight.
Thank you for always watching CBS NEWS.
Create a free account or log in
for more features.
https://www.cbsnews.com/news/first-republic-bank-stock-price-2023-04-28/ First Republic Bank shares plummet as hopes of a bailout fade