Shares of First Republic Bank reversed gains after reports that authorities were working to broker new aid for the bank.
The stock reversed a pre-market gain of more than 8% to trade down 1.2% at $6.10 after the open on Friday. This follows a gain of 8.8% on Thursday.
Officials from the US government, the Federal Reserve and …
Shares of First Republic Bank reversed gains after reports that authorities were working to broker new aid for the bank.
The stock reversed a pre-market gain of more than 8% to trade down 1.2% at $6.10 after the open on Friday. This follows a gain of 8.8% on Thursday.
Officials from the United States government, the Federal Reserve, and the Federal Deposit Insurance Corporation coordinate meetings to provide a lifeline for the First Republic, Reuters reportedciting unknown people close to the conversations.
These bailouts usually take place over the weekend, outside the pressure of trading hours. It is not clear if or how US authorities will be involved in the lifeline itself, the report said.
separately , Financial Times I mentioned that the Biden administration is skeptical of First Republic’s efforts to find a private sector solution that would boost confidence in the bank. In March, JPMorgan Chase and other large banks placed $30 billion in deposits with the First Republic to ease concerns about its health.
Announcement – scroll to continue
“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our customers,” said a First Republic spokesperson.
Other regionals were declining on Friday. PacWest Bancorp (PACW) fell 0.4% after falling 2.1% on Thursday. Western Alliance (WAL) rose 0.8%.
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