First Republic shares bounce a bit after sharp sell-off
First Republic Bank’s (FRC.N) shares rose 10% on Thursday morning, rebounding from a steep sell-off that wiped out nearly 60% of the bank’s market capitalization this week.
San Francisco-based First Republic disclosed on Monday that it had lost more than $100 billion of deposits in the first quarter of the year, triggering a sharp selloff of the bank’s stock.
First Republic’s shares were up 10% to $6.27 per share in early trading, after plunging to new depths on Wednesday. The bank’s stock closed last week at $14.26 per share.
First Republic’s swoon this week has brought the U.S. banking sector under renewed pressure in its biggest turmoil since 2008.
“First Republic lost and is continuing to lose deposits. No bank on earth can survive if its customers pull their money out of the bank – especially if it happens all at once,” said Adam Sarhan, CEO of 50 Park Investments.
U.S. bank regulators are weighing the prospect of downgrading their private assessments of the San Francisco-based lender, according to a report from Bloomberg News on Wednesday.
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