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What the numbers say: First Republic Bank's share price fell by as much as 28% on Wednesday, following reports that U.S. regulators would not intervene to save the troubled bank. First Republic stock is down over 95% year-to-date. Relevance: First Republic lost $72B of deposits in Q1 as clients moved their savings to other banks. The bank has faced questions about its solvency despite receiving a $30B cash injection from 11 large banks last month as part of a rescue package. What's Next?: Even though First Republic is reportedly considering selling between $50M and $100M in assets, solvency concerns persist. The bank announced plans to lay off 20-25% of its staff and reduce executive pay to cut costs, and CEO Mike Roffler said he had been in contact with state and federal regulators. |
