First Republic Bank has continued its downward spiral, as shares have fallen another 37% today. Moreover, the plummeting price continues as rumors of a potential government rescue deal persist. Specifically, US officials are reportedly in talks to commence an urgent rescue of the troubled bank.
Shares of First Republic Bank are down approximately 96% since the start of the year. Additionally, Fox Business reported that the stock had fallen more than 50% at midday trading and more than 70% since last month.
First Republic Bank Fall Continues
A month after a budding banking crisis began in the US, one financial institution is on the brink of collapse. Specifically, First Republic Bank has continued its descent, falling another 37% today. Ultimately falling more than 96% since the start of 2023.
The development arrives as US government officials have been in “urgent talks” over a potential rescue deal. Additionally, government interference has persisted as the bank itself has been attempting to set in motion a solution to its fading prices.
It was reported that the Federal Deposit Insurance Corporation (FDIC), the Treasury Department, and the Federal Reserve spoke about potential rescue efforts. Moreover, it was expected that the bank would enter FDIC receivership as it continued its fall.
Alternatively, the government took similar action regarding various banking closures that occurred earlier this year. Conversely, the shutdown of Silicon Valley Bank and Signature Bank, where the first banking closures set off concern over a potential crisis in the sector. Moreover, that shutdown signified the largest banking closures since the 2008 financial crisis.