ערשטער רעפובליק שאַרעס פאַלן טראָץ אַוועקלייגן ינפיוזשאַן, דראַגינג אַראָפּ אנדערע רעגיאָנאַל באַנקס

מענטשן זענען געזען אין דער ערשטער רעפובליק באַנק צווייַג אין מידטאַון מאַנהאַטטאַן אין ניו יארק סיטי, ניו יארק, יו. עס., 13 מערץ 2023. רעוטערס / מייק סעגאַר

Mike Segar | רעוטערס

שאַרעס פון ערשטע רעפובליק were under pressure Friday despite the beaten-down regional bank receiving aid from other financial institutions.

As of 11:12 a.m. ET, the stock was down about 24% and was the worst performer in the SPDR S&P רעגיאָנאַל באַנקינג עטף (KRE) — which dropped 5%. PacWest און מערב אַלליאַנסע also lost more than 13% each, while KeyCorp סילד קסנומקס.

Those losses come even after 11 other banks pledged to deposit $30 billion in First Republic as a vote of confidence in the company.

“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes, and it demonstrates their overall commitment to helping banks serve their customers and communities,” the group, which includes Goldman Sachs, Morgan Stanley and Citigroup, said in a statement.

בערזע טשאַרט יקאָןלאַגער טשאַרט בילדל

באַהאַלטן אינהאַלט

First Republic Bank continued to crater on Friday.

To be sure, there were concerns that the infusion may not be enough to shore up First Republic going forward.

Atlantic Equities downgraded First Republic to neutral, noting the bank may need an additional $5 billion in capital. 

“Management is exploring different strategic options which may include a full sale or divestments of parts of the loan portfolio. The limited information provided implies that the balance sheet has increased substantially, which may well necessitate a capital raise,” analyst John Heagerty wrote.

Meanwhile, Wedbush analyst put a $5 price target on First Republic, saying that a takeover could wipe out most of its equity value.

“A distressed M&A sale could result in minimal, if any, residual value to common equity holders owing to FRC’s significant negative tangible book value after taking into account fair value marks on its loans and securities.”

- CNBC מיכאל בלום קאַנטריביוטיד צו דעם באַריכט.

Source: https://www.cnbc.com/2023/03/17/first-republic-shares-fall-despite-deposit-infusion-dragging-down-other-regional-banks.html