Despite the biggest banks in the U.S. injecting $30 billion into First Republic Bank, the company’s stock continues to plummet. On Monday, the stock price fell by more than 47%, with trading being halted several times due to volatility.
In the last two weeks, the shares have declined by about 88%, closing at $12.18 after hitting an all-time low of $11.52 last week, CBS News is reporting.
Investor confidence in regional lenders such as First Republic has been severely impacted by the sudden collapse of Silicon Valley Bank (SVB) on March 10 and New York’s Signature Bank two days later.
This has raised concerns regarding the uninsured deposits held by such lenders, which exceed the $250,000 cap set by the Federal Deposit Insurance Corp.
Written by staff