TFC - Why did First Republic Bank stock crash today? Contagion fears spread across banks
2023-03-13 16:47:44 ET
- First Republic bank ( NYSE: FRC ) stock tumbled as much as 78% on Monday after actions taken by federal regulators to ease market jitters surrounding contagion in the banking sector failed to provide the regional lender relief.
- The failures of Silicon Valley Bank ( SIVB ) and Signature Bank ( SBNY ) sparked fears among investors about the health of smaller-sized banks.
- Regional bank stocks took a massive beating during the session, with the biggest decliners featuring KeyCorp ( KEY ), -27.4% , Comerica ( CMA ), -27.7% and Truist Financial ( TFC ), -17% .
- Raymond James earlier downgraded First Republic ( FRC ) stock to Market Perform from Strong Buy as its earnings power could be negatively impacted if net deposit outflows were to come to fruition. On the flip side, KBW named FRC a safe haven stock with 73% upside potential.
- On Sunday, First Republic got improved its financial position through access to additional liquidity from the Federal Reserve and JPMorgan Chase.
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Why did First Republic Bank stock crash today? Contagion fears spread across banks