US’ First Republic Bank on Brink of Collapse: Report
TEHRAN (Tasnim) – First Republic Bank’s already-dire situation went from bad to worse this week as its stock nose-dived after a sobering earnings report.
The San Francisco-based bank appears to be on the verge of severe collapse, and observers worry whether its troubles could spread to other financial institutions.
Reuters first reported on Friday afternoon that the Federal Deposit Insurance Corporation is expected to rapidly take the bank under receivership, following a stock crash.
The share price for First Republic’s stock declined some 43% on Friday alone to close at $3.51 following deep selloffs earlier this week—the stock is down around 98% from its 52-week high, Forbes reported.
That was thrown into stark relief earlier this week when First Republic said that its customers withdrew $102 billion in the first quarter, more than half of the $176 billion it held in deposits at year end. It has been scrambling to shore itself up with $92 billion in loans from the government, as well as a $30 billion temporary infusion from big banks.