Following reports of a potential seizure by US authorities, First Republic Bank is seeking a government rescue amid its plummeting stock prices. Moreover, the California-based lender has seen trading halted on two consecutive days due to increased volatility.
According to a report from the New York Post, First Republic Bank is seeking assistance from the Biden Administration. Subsequently, the bank is hopeful for a governmental rescue following its $100 billion loss in deposits.
First Republic Seeking Government Aid
The budding banking crisis that took down Silicon Valley Bank has continued this month. Now, it threatens First Republic Bank, which has seen its prices fall drastically following exposure to the events in the banking sector last month. Yet, new reports signal that the bank is set to turn toward US authorities for aid, as its price has decreased more than 94% in the year.
First Republic Bank is reportedly seeking a government rescue amid its stock market downturn. Moreover, the New York Post reports the development following the news of a potential government seizure that arrived yesterday.
At the start of trading on Wednesday, shares of First Republic Bank were down more than 18%. Additionally, the fall led to a closing price a day earlier that was 50% lower according to the report. Conversely, the bank has reported that customers withdrew a total of $100 billion worth of deposits over the first three months of the year. Subsequently, it set up the troublesome position in which it now finds itself.
Potential salvation seems increasingly difficult for the bank. Moreover, Bloomberg previously reported that the financial institution is looking to sell $50 billion to $100 billion in assets. Nevertheless, the growing imbalance between assets and liabilities has spelled doom for the banks. Lessening its chances of turning around its lessening position.