First Republic shares fall on fresh liquidity fears
STORY: Shares of First Republic Bank plummeted as much as 50% on Monday, deepening recent losses as investors feared the $30 billion pumped into the troubled lender last week by several big U.S. banks might not be enough to keep it afloat.
S&P Global downgraded First Republic deeper into junk status this week and said the recent cash infusion from 11 large banks may not solve its liquidity problems.
A report from the Wall Street Journal said JPMorgan Chase CEO Jamie Dimon is leading talks with the heads of other big banks about fresh efforts to stabilize First Republic.
Anna Rathbun is chief investment officer at CBIZ Investment Advisory Services.
"What has happened is that the $30 billion injection is just an injection. It has not actually added any equity to the banking balance sheet. So what the investors are afraid of is, okay, we now have the short-term solution, but it's not a long-term solution and equities are actually a long-term instrument. And so when the markets look far out, they're thinking what next? Certainly any big bank, any large bank could buy First Republic. It doesn't have to be JPMorgan. JPMorgan could do it. I'm not entirely sure that JPMorgan would have the appetite to take in First Republic. They may have to divide it up. It might not be one bank that buys it. It might be sliced and diced. We don't know that yet. I'm sure that that is not the desirable situation for First Republic, but that is what is on the line."
A wave of withdrawals had hit the San Francisco-based bank after the collapse of Silicon Valley Bank earlier this month.
As fears persist, First Republic's shares have fallen more than 80% in the past 10 trading sessions.
The New York Times reported late last week that First Republic is in talks to raise capital from other banks or private equity firms by issuing new shares and could also negotiate a deal to be sold.
On Sunday, Reuters reported that First Republic was still trying to put together a capital raise but that no deal was imminent.
相關影片推薦
- 1:52義大利絕美「眾神之路」中世紀牧人小徑變身熱門景點Yahoo奇摩(國際通)40,263 次觀看・1 天前
- 1:57南投竹山26戶別墅地層下陷 53住戶連夜撤離民視影音11,956 次觀看・16 小時前
- 1:59仁武豪華別墅地下室滅頂 居民矛頭指向市府重劃工程民視影音56,449 次觀看・16 小時前
- 2:43只差3秒! 蘇花工程人員逃命畫面曝光 倒車逃險遭埋華視影音89,314 次觀看・21 小時前
- 2:01中國快時尚危機 年丟2600萬噸衣服 合成纖維占7成無法回收Yahoo奇摩(國際通)127,221 次觀看・2 週前
- 1:58鼓山美術館豪宅區淹大水 整片"土黃泥流"損失慘民視影音123,738 次觀看・1 天前
- 1:47台南新營區"後鎮排水"潰堤 鹽水區淹成汪洋民視影音192,951 次觀看・21 小時前
- 1:58新北送高雄1146元外送單是真的! 外送員現身東森新聞影音416,716 次觀看・3 天前
- 11:02地震來了怎麼辦?豆腐別再涼拌了,教你新吃法,做法簡單味道足,加上杏鮑菇,香!芭樂媽的家 Qistin Wong TV72,520 次觀看・5 天前
- 6:49凱米剛走!低壓帶下週一、二接近台灣 「這2地區」恐受影響民視影音29,013 次觀看・16 小時前
熱門必看
- 13:07葉全真不愛邀人作客竟是因為這點?唐老師:「好典型的處女座」!Ep.225-2唐綺陽談星室374,592 次觀看・3 週前
- 24:06霸氣挑戰南部小吃價格 吃到賺到!板橋10樣親民價美食Yahoo創作摩人134,464 次觀看・1 個月前
- 23:55吃爆三峽老街美食|九間就被擊垮了|最道地金牛角竟是這家?|阿環格格出遊去 Ft.阿環小姐 [送你營養吃]黃君聖Sunny營養師154,237 次觀看・1 個月前
- 21:58瀕臨破產到全球市值最強!輝達(Nvidia)是怎麼崛起的?買他們股票的都賺翻了?《 時代的巨人》EP 021|志祺七七志祺七七 X 圖文不符202,077 次觀看・1 個月前
- 6:30台中南屯|百年秘方汕頭火鍋Lee Yi李易42,129 次觀看・1 個月前