28 Apr. (EUROPE PRESS) –
The shares of First Republic Bank have plummeted more than 36% in the mid-session this Friday due to the uncertainty surrounding its viability after information from ‘CNBC’ sources that assure that the “most likely” thing is that the entity is intervened by the Federal Deposit Insurance Corporation (FDIC).
These same sources have ensured that the FDIC has surveyed “other banks” about “potential offers” in case they have to intervene. However, these informants have also affirmed that “there is still hope” that a solution will be reached that does not involve intervention.
In this sense, First Republic Bank itself has confirmed to ‘CNBC’ that “it is in talks with various parties about the options” available. This Friday, the shares were trading at $3.90 (3.54 euros), a value of $2.29 (2.08 euros) below the previous day.
Last Wednesday, the shares of First Republic Bank fell more than 36% after the regional bank’s share price had already sunk 49.37% on Tuesday due to uncertainty about the future viability of the bank, which in the first quarter of 2023 suffered a massive flight of deposits.
According to the data published last Monday by the entity at the close of the markets in the United States, in the first quarter of the year it recorded the withdrawal of almost 58% of the deposits recorded in the previous quarter, a figure of around 100,000 million dollars (90,691 million euros).
In this way, the First Republic Bank has accumulated a 90% drop in the stock market so far this year.
