First Republic Bank Shares Down Nearly 60% In Premarket

March 13, 2023

By: Jai Pratap

First Republic shares shed more than half their value premarket, down almost 60%, leading losses among regional banks.

The American bank had announced Sunday that it had shored up its finances with additional funding from the Federal Reserve and JPMorgan Chase.

Investors have been dumping shares of banks that have potentially similar profiles as Silicon Valley Bank.

First Republic's  CEO reassured that "its capital remains well above the regulatory threshold for well-capitalized banks."

Like SVB, First Republic also showed a large gap between the fair-market value and balance-sheet value of its assets, causing a panic among investors.

Credit agencies cut SVB's credit ratings. SVB, Silvergate and Signature’s collapse has spiraled into a wider economic collapse, with several predicting more banks to collapse.

Regulators shuttered SVB Friday and seized its deposits in the largest U.S. banking failure since the 2008 crisis and the second-largest ever.