2023-04-26 16:22:03
The action has been suspended from trading five times and is down more than 95% compared to the start of the year. The bank revealed on Monday evening that its customers withdrew more than 100 billion in deposits in the first quarter.
By Le Figaro with AFP
Published update
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The action of the American regional bank First Republic continued to plunge on Wednesday to a low, suffering a series of suspensions of quotations on the Nasdaq. The title, which has already lost almost half of its value on Tuesday, still dropped 18% on Wednesday morning around 3:20 p.m. GMT to be worth only 6.59 dollars. The stock has been suspended from trading five times. It is down more than 95% compared to the beginning of the year.
The bank is particularly under pressure following revealing on Monday evening that its customers withdrew more than 100 billion in deposits in the first quarter. But it has been in the spotlight since mid-March, when the authorities and other financial institutions came to its rescue to prevent it from experiencing the same fate as Silicon Valley Bank and Signature Bank, namely bankruptcy.
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” READ ALSO – First Republic Bank plunges 49% on Wall Street following massive withdrawal of deposits
Stabilized withdrawals
First Republic assured that withdrawals from its customers had stabilized since the end of March, that it planned to cut its expenses by laying off up to a quarter of its workforce and that it was going to limit the sums it lends. According to Bloomberg, the bank is seeking to sell $100 billion worth of assets such as mortgages and long-term securities.
Asked by AFP regarding the ongoing discussions, the bank had not yet responded. As for the federal agency FDIC, which insures banks’ deposits, it refrained from commenting: the agency “does not comment on institutions that are open and functioning“, she said.
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