First Republic bank in limbo as shares fall further
First Republic Bank’s shares plummeted by 43% on Friday, after experiencing a massive drop in deposits.
Its value has dropped from US$40bn to US$654m, with experts speculating that the most likely scenarios include the sale of the bank or its assets to other financial players, following a receivership by the FDIC. However, the negative value of First Republic’s loans could cause a loss in value for prospective buyers.
Meanwhile, former FDIC Chair Sheila Blair is worried that not protecting uninsured deposits could surprise people and be disruptive.