Troubled US bank First Republic plunges another 50%
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Quotes of shares of the American First Republic Bank on the basis of trading on Tuesday fell by 49.4% to $8.10, updating the historical low. This is how investors reacted to unsatisfactory financial indicators companies in the first quarter of the year. Since the beginning of this year, the bank’s market capitalization has already decreased by 90%.
In particular, on Tuesday, First Republic reported that the outflow of funds from deposits in the first three months of the year amounted to about $72 billion. Their volume decreased from $176 billion to $104 billion. At the same time, this amount already includes $30 billion, which First Republic received from the US Federal Reserve and six banks as part of the rescue program. This means that the outflow of funds from the bank’s customers exceeded $100 billion.
According to Bloomberg, now the bank’s management is exploring all possible ways to reduce costs, as well as increase liquidity, in order to convince investors of its reliability. Among the proposed measures is the sale of assets worth between $50 billion and $100 billion. According to agency sources, First Republic will try to sell mortgages and maturing securities to other banks. The bank declined to comment on this information.
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