The share price of the American First Republic Bank recorded a new low on the New York Stock Exchange, while rumors multiplied about a strategy or plan to rescue it that has not yet been realized.
At the end of yesterday’s Friday session, the share price of the bank, which was the fourteenth largest among the largest US banks in terms of assets in 2022, fell by 43 percent on Wall Street and reached $ 3.51 after it suspended its trading several times during the session due to large fluctuations.
Thus, the value of the bank is estimated at $654 million, while it was $20 billion at the beginning of the year and more than $40 billion at its peak in November 2021.
He founded First Bank in 1985 and is headquartered in San Francisco with branches primarily in California and East Coast cities and serves wealthy clients.
But his fate seems unclear after his failure with two other banks in March. The three banks share a focus on specific customers and/or a specific geographic area.
Authorities and other financial institutions sought to spare “First Republic” the fate of Silicon Valley Bank and “Signature Bank” bankruptcy after sudden huge withdrawals to customers.
The Wall Street Journal, quoting sources close to the file, stated that the US Deposit Insurance Agency (FDIC) may acquire the bank and then sell its assets to another institution. Other interested institutions include JPMorgan Chase and BNC Financial Services.
The bank confirmed on Monday evening that a number of its clients had withdrawn deposits worth more than $100 billion in the first quarter of this year.
He relied on $30 billion placed by other banks in his accounts, but that was not enough in the eyes of investors, who caused a drop in the share price on Tuesday and Wednesday, before stopping Thursday.
This article was originally published by RT.