Wall Street, First Republic Bank crashes

Wall Street, First Republic Bank crashes

Jingle on Wall Street for First Republic Bank. The start was quickly aborted in a very volatile session as investors worried about the banking crisis. After early trading, the Dow Jones rose 0.39% to 31,987 points, the S&P 500 rose 0.20% to 3,924 points, and the Nasdaq fell 0.25% to 11,600 points. In the end the stock lost 18% despite an infusion of $30 billion in deposits made by a group of 11 major US banks.

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However, First Republic Bank’s decline has its roots far back. It is the fourth largest US bank by activity and is headquartered in San Francisco. He sees his stock market valuation drop starting March 9th. Its stock drops the following week. On March 16, Wall Street giants including JPMorgan, Bank of America and Citigroup pledged to deposit $30 billion in the lender. But despite the bailout package, rating agency Standard & Poor’s downgraded the bank’s long-term credit rating from BB+ to B+ on Sunday, March 19. The agency warns that it will cut them further if there is no progress in stabilizing deposits. And First Republic Bank asserts that, with an injection of $30 billion, the lender is “well positioned to handle the short-term deposit business.”

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