FRC - Why First Republic Stock Collapsed 70% This Week
2023-04-28 14:10:48 ET
The trouble with regional banks continues. Shares of First Republic Bank (NYSE: FRC) collapsed by over 70% this week, according to data from S&P Global Market Intelligence . The lender reported poor first-quarter earnings with massive deposit outflows and is rumored to be headed for receivership with the Federal Deposit Insurance Corp. (FDIC).
As of this writing, First Republic stock is down 97% year to date (YTD) and looks to be headed for a complete wipeout for shareholders.
First Republic ran into trouble in March in conjunction with the Silicon Valley Bank (part of SVB Financial ) collapse. Prominent venture capitalists decided to tell all their portfolio companies to pull money out of Silicon Valley Bank, causing panic and a run on the bank, with depositors fleeing the institution seemingly overnight.
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Why First Republic Stock Collapsed 70% This Week