FRC - Is First Republic Bank Stock a Buy?
2023-04-08 08:47:00 ET
One of the most important things an investor can do is find a comfortable balance between risk and reward, which will be different for everyone. In the end, this is the big question with regard to First Republic Bank (NYSE: FRC) , a financial institution that has gotten caught up in the current banking crisis. With the shares down 88% in a month, are investors overreacting, or is the risk still too high here?
Without getting too deep into the technicalities, the U.S. has seen a series of bank runs. These are very scary events, as they can quickly become contagious. All it takes is a mere hint of worry, and people will run to pull their money from a bank , often causing a worsening spiral. And that remains true even with government safeguards in place for customers with relatively modest amounts of cash -- i.e., FDIC insurance for amounts of $250,000 or less.
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Is First Republic Bank Stock a Buy?