FRC - First Republic Bank plunges amid report it's evaluating possible sale

2023-03-16 07:05:25 ET

First Republic Bank ( NYSE: FRC ) sunk 25% in premarket trading amid a report that it's evaluating strategic options, including a potential sale.

The bank, whose shares had plunged 80% in the past week in the wake of the failure of Silicon Valley Bank, is also weighing options to improve its liquidity, according to a Bloomberg report, which cited people familiar. The San Francisco-based lender is likely to garner takeover interest from larger rivals.

The potential sale comes after S&P cut the lender's rating to junk on outflow risk on Wednesday. Fitch Ratings also downgraded First Republic ( FRC ) and put the bank on negative rating watch.

On Sunday First Republic ( FRC ) announced it gained access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase bringing its total available, unused liquidity to fund operation to more than $70B.

More on the bank crisis

First Republic Bank: 4 Reasons To Buy

As Banking Stocks Tumble, I Turn To Bank Of America And Toronto-Dominion

Goldman expected to make $100M from buying SVB assets last week

Bank of America: Brace For Impact

For further details see: