First Republic Bank plunged at the opening bell today, an ongoing rout that has erased more than 50% of its value just this week on concerns about the bank's financial health in the wake of two other bank collapses.
What caused Silicon Valley Bank's collapse was mostly the bank's investments in U.S. treasury bonds, a typically safe asset.
First Republic Bank plunged at the opening bell Wednesday, an ongoing rout that has erased more than 50% of its value just this week on concerns about the bank's financial health in the wake of two other bank collapses. Shares slumped 26%, following an even more severe tumble Tuesday, after it revealed that depositors withdrew more than $100 billion last month after the collapse of Silicon Valley Bank and Signature Bank.The bank said late Monday that it was only able to stop the bleeding after a group of large banks stepped in to save it by depositing $30 billion in uninsured deposits.
The San Francisco bank plans to sell off unprofitable assets, including low interest mortgages it provided to wealthy clients. It also has plans to lay off up to a quarter of its workforce, which totaled about 7,200 employees at the end of last year.
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