First Republic Bank Shares Sink to Another Record Low

The Breakdown


All right, Friends, another day, another set of serious updates around the global banking crisis. We start with first republic, which had another shocking day on Monday with the stock price plummeting 47% to an all time low. The stock was halted 9 times during its freefall and has now lost 90% of its equity value since the beginning of March. First Republicans experienced a massive $70 billion in deposit outflows over the month, as customers grow concerned about the safety of the bank afflicted with the same duration mismatch impairment that took down Silicon Valley bank alongside signature. Now on Friday, a consortium of major banks led by JPMorgan Chase, agreed to offer first republic 30 billion in deposits, consisting of the deposits which would float out of the troubled community bank. Ratings agency S&P said this package may not be enough to solve the quote substantial challenges facing the bank even if it does ease short term pressures on liquidity. On Monday, JPMorgan CEO Jamie Dimon was back in talks to discuss converting the $30 billion in deposits into a capital infusion in an attempt to calm the panic around the already shaky bank. JPMorgan investment bankers have also been hired by first republic to explore options with a sale also being in the cards. Unfortunately, right now it's not clear how likely that is. Now that said, first republic doesn't necessarily represent the entire banking industry, with some time having passed since the collapse of Silicon Valley bank and the introduction of the fed's emergency liquidity program, the bank term funding program or BTF, regional banks actually saw a broad rally on Monday. This was led by New York community Bancorp, which we'll discuss in just a moment with a record 30% daily gain. Zero X makes he says, if you're in crypto and not following what's happening on community bank Twitter right now, you should be. Regardless of intent, the effect of both choke .2 and our two tier deposit insurance double standard is the same. To centralized resource allocation decisions in D.C. and New York.

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