First Republic falls 30% as regional bank stocks continue to sink

Shares of First Republicand several other regional banks were under pressure again Thursday, as the Swiss National Bank’s move to shore up Credit Suisse did little to calm fears about more midsized bank failures in the U.S.

First Republic fell more than 30% in morning trading. PacWest dropped 14%, and Western Alliance shed about 12%.

The collapse of Silicon Valley Bank last Friday has left investors scrambling to identify other regional banks that have similar balance sheet issues, namely a high rate of uninsured deposits and bonds or loans with a long time to maturity.

First Republic had the third-highest rate of uninsured deposits among U.S. banks, behind SVB and Signature Bank, which was closed by regulators over the weekend, according to a note from Raymond James. First Republic’s stock was down nearly 75% in March as of Wednesday’s close, and the bank’s debt has been downgraded by S&P Global Ratings and Fitch Ratings.

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One Comment

Weimar Wheelbarrow March 16, 2023 at 14:21

The big fish too big to fail banks will consume the little fish of regional then the UN/WEF One World Bank will merge them all and introduce CBDC?
Aren’t bank runs and collapse constructs of the white male patriarchy? (Honk!)