FRC - First Republic Bank stock sinks 30% more as it strives to survive (updated)

2023-04-26 17:30:10 ET

First Republic Bank ( NYSE: FRC ) stock dropped 30% more, plumbing new lows, in Wednesday regular trading as the bank seeks to convince other banks to buy $50B-$100B of its long-dated and mortgage securities in an effort to shore up its balance sheet.

The stock was halted halted numerous times during the session.

CNBC reported that First Republic ( FRC ) is making the case for buying its bonds at above-market rates for a loss of a few billion dollars. If its plan fails, and with it FRC, then those same banks would have to pay ~$30B in Federal Deposit Insurance Corp. fees.

First Republic's ( FRC ) advisers have reportedly lined up potential purchasers for new FRC stock if it can reduce its balance sheet sufficiently, CNBC said Wednesday.

In addition, the cable channel reported that government officials are currently not willing to intervene in the process. (Updated at 10:11 AM ET).

Year-to-date, the bank's stock has dropped 93%, with most of the decline coming after the failures of Silicon Valley Bank, Signature Bank, and Silvergate Capital. First Republic ( FRC ) caters to clientele similar to the venture capital-financed customers of SVB.

The SA Quant system flashed Sell on FRC in October 2022.

More on First Republic Bank:

First Republic Bank Crashes 50%

I See Almost No Viable Path to Equity Survivorship

We Have Reached a Point of No Return

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