First Republic Bank plunges more than 50% in pre-market trading, with several US bank stocks experiencing significant declines as well.
Due to its operating model being challenged in a rising interest rate environment, coupled with the successive closures of Silvergate, Silicon Valley Bank (SVB), and Signature Bank, shares of First Republic Bank (FRC) dropped another 50% (at one point reaching 70%) in pre-market trading on the 13th. At the time of reporting, other banks such as PacWest Bancorp fell over 35%, Western Alliance Bancorp. dropped over 45%, and Zions Bancorp N.A. declined more than 9%.
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First Republic Bank is facing challenges surviving in a rising interest rate environment, especially after Silvergate, Silicon Valley Bank (SVB), and Signature Bank have successively closed. The stock of First Republic Bank (FRC) dropped by 50% in pre-market trading on the 13th, reaching 70% at one point. At the time of writing, other banks such as PacWest Bancorp fell by over 35%, Western Alliance Bancorp. dropped by over 45%, and Zions Bancorp N.A. decreased by over 9%.
Today, Signature Bank was unexpectedly taken over by the FDIC. Although there have been rumors of a run on First Republic Bank, after the Federal Reserve announced the BTFP plan to guarantee deposit liquidity, there have been no reports of new bank closures.