First Republic Bank is considering selling itself after being downgraded by two rating agencies.
The possible sale is expected to attract interest from the bank's larger competitors, Bloomberg reports.
- Fitch Ratings and S&P Global Ratings downgraded First Republic Bank’s credit rating to junk status on Wednesday due to concerns that customers would pull their deposits.
- Shares in First Republic plunged to a decade low of $31.16 following the downgrades.
- First
Republic is considering selling itself to a larger bank, but may still
opt to remain independent, reports Bloomberg, citing people familiar
with the matter.
- Investors began dumping shares of First Republic and other banks after federal regulators were forced to seize Silicon Valley Bank and Signature Bank last week.
- First Republic's stock rout came despite the bank's announcement
on Sunday that it had been granted additional liquidity from the U.S.
Federal Reserve and JPMorgan Chase & Co to shore up its finances.
