The share price of the American First Republic bank recorded a new low on the New York Stock Exchange yesterday, Friday, while rumors multiplied about a strategy or plan to rescue it that has not yet been realized.
At the end of yesterday’s session, the bank’s share price – which was the 14th among the largest US banks by assets size in 2022 – fell by 43% on Wall Street and reached $3.51 after it suspended its trading several times during the session due to large fluctuations.
Thus, the value of the bank is estimated at $ 654 million, while it was $ 20 billion at the beginning of the year and more than $ 40 billion at its peak in November 2021.
Founded in 1985 and headquartered in San Francisco, First Bank primarily has branches in California and East Coast cities and serves wealthy clients.
But his fate seems unclear after his failure with two other banks last March. The three banks share a focus on specific customers and/or a specific geographic area.
Authorities and other financial institutions sought to spare the First Republic the fate of Silicon Valley Bank and Signature Bank, which is bankruptcy after sudden huge withdrawals to customers.
The Wall Street Journal, quoting sources close to the file, reported that the US Deposit Insurance Agency may acquire the bank and then sell its assets to another institution.
Other interested institutions include JPMorgan and PNC Financial Services.
The bank confirmed last Monday evening that a number of its clients withdrew deposits exceeding $100 billion in the first quarter of this year.
And he relied on $ 30 billion that other banks put in his accounts, but that was not enough in the eyes of investors, who caused a decrease in the share price on Tuesday and Wednesday, before stopping the day before yesterday, Thursday.
2023-04-29 11:48:48
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