First Republic Bank and Credit Suisse shares tumbled Friday, resuming the downward trend that was interrupted on Thursday when both banks received pledges of emergency funding aimed at shoring up their beleaguered finances.
Silicon Valley Bank on March 10. As with Silicon Valley Bank, a significant share of First Republic's deposits are uninsured, which makes it more prone to withdrawals from skittish customers. The bank holds $212 billion in assets under management and has about 7,200 employees.
With questions swirling about First Republic's financial stability, its stock price has plunged, losing 81% of its value since the start of the month. Meanwhile, Credit Suisse's problems began long before the Silicon Valley Bank meltdown. It racked up $8 billion in net losses last year —the largest the company has ever recorded.
Credit Suisse is"a bigger threat to the global economy" in part because it has subsidiaries outside Switzerland and handles trading for hedge funds, Kenningham said. Shares of other regional banks including KeyCorp, Pacific West, Western Alliance and Zions plunged between 7% and 11% on Friday, but those banks weren't promised billions of dollars in help like Credit Suisse and First Republic.
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