SNCE - Why Is First Republic Bank (FRC) Stock Down 61% Today?
2023-03-13 08:58:30 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
First Republic Bank (NYSE: FRC ) stock is falling hard on Monday as bank stocks react to the recent drama surrounding SVB Financial (NASDAQ: SIVB ).
The big news here is SVB Financial kicking offer concerns about liquidity that spread to other banks. This resulted in the federal government getting involved and offering loans to banks to ensure liquidity.
First Republic Bank is among those that have received a loan from the government. Other changes include the Federal Reserve easing up on banks with discounts. It’s also worth noting other bank stocks are falling on Monday as well.
What Happened With SVB Financial?
The bank offered a large number of uninsured securities, and it took a beating last week when massive withdrawals hit it. This resulted in the bank having to close its business, making it the biggest U.S. bank failure since 2008.
Oppenheimer analyst Chris Kotowski weighed in on today’s bank stock movement with the following statement, according to CNBC :
“Unfortunately, one of the first consequences of SIVB’s collapse is probably that it will cause a flight of uninsured deposits from smaller, less diverse banks to larger, more diverse ones.”
In the case of FRC stock, today’s news has it seeing heavy trading as investors sell shares. That has some 13 million units on the move, as compared to its daily average of 2.6 million shares.
FRC stock is down 60.9% as of Monday morning.
There’s more stock market news traders need to know about below!
We’ve got all of the latest stock market coverage traders need to know about on Monday! That includes why shares of Science 37 (NASDAQ: SNCE ) and Provention Bio (NASDAQ: PRVB ) are rising, as well as the biggest pre-market stock movers this morning. You can find all of that below!
More Monday Stock Market News
- Why Is Science 37 (SNCE) Stock Up 9% Today?
- Why Is Provention Bio (PRVB) Stock Up 263% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
More From InvestorPlace
- Buy This $5 Stock BEFORE This Apple Project Goes Live
- The Best $1 Investment You Can Make Today
- It doesn’t matter if you have $500 or $5 million. Do this now.
- Massive Bear Market “Divergence Event” Ahead… And The #1 Way to Play It
The post Why Is First Republic Bank (FRC) Stock Down 61% Today? appeared first on InvestorPlace .