{"id":18943,"date":"2023-03-20T17:52:42","date_gmt":"2023-03-20T17:52:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/first-republic-banks-shares-downgraded-to-junk-status-by-s-stock-slides-more-than-25-lower-bitcoin-news\/"},"modified":"2023-03-20T17:52:42","modified_gmt":"2023-03-20T17:52:42","slug":"first-republic-banks-shares-downgraded-to-junk-status-by-s-stock-slides-more-than-25-lower-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/first-republic-banks-shares-downgraded-to-junk-status-by-s-stock-slides-more-than-25-lower-bitcoin-news\/","title":{"rendered":"First Republic Bank’s Shares Downgraded to Junk Status by S&P Global; Stock Slides More Than 25% Lower \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After UBS acquired Credit Suisse and close to a dozen financial institutions injected $30 billion into First Republic Bank four days ago, S&P Global downgraded First Republic\u2019s shares to junk status on Sunday. Investors are concerned that the cash infusion from 11 major financial institutions may not address the bank\u2019s liquidity issues. First Republic\u2019s shares fell more than 15% on Monday morning when Wall Street opened and by 1:15 p.m. (ET), the stock was down more than 25%. <\/strong><\/p>\n

First Republic Bank Shares Slide 25% Lower Despite $30B Cash Infusion From 11 Lenders Last Week<\/h2>\n

At around 1:15 p.m. Eastern Time on Monday, March 20, 2023, shares of San Francisco-based First Republic Bank (NYSE: FRC<\/a>) were down more than 25% against the U.S. dollar. The commercial bank and wealth management services provider recently received<\/a> $30 billion from 11 major banks, including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, BNY Mellon, PNC Bank, State Street, Truist Bank, and US Bank, on March 16.<\/p>\n

However, the cash infusion has not helped First Republic as S&P Global reduced the bank\u2019s stock (FRC) to junk status<\/a>, citing concerns that the recent help from 11 banks may not alleviate First Republic\u2019s problems. This was the second downgrade of FRC in less than a week. First Republic has attempted<\/a> to raise capital by issuing more shares and seeking investment from private equity firms and smaller banks.<\/p>\n

This is First Republic\u2019s second attempt to raise capital since March 10<\/a>, and then it received the deposit injection from the major lenders six days later. CNN contributor Allison Morrow was told that First Republic is facing a fate similar to that of Silicon Valley Bank (SVB) due to being a \u201cBay Area-based lender with a deep-pocketed client base.\u201d Patricia McCoy, a law professor at Boston College, told<\/a> Morrow that depositors are \u201cparticularly trigger-prone.\u201d<\/p>\n

\u201cThey\u2019re sophisticated, they know they have other options, and they have mechanisms in place to move money quickly,\u201d McCoy added.<\/p>\n

At 1:15 p.m. (ET) on March 20, 2023, First Republic\u2019s shares are down more than 25% this afternoon and trading for just above $17 per share<\/a>. The bank\u2019s shares reached an all-time intraday low while other banks managed to weather<\/a> the storm on Monday following the Credit Suisse buyout.<\/p>\n

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Bailout<\/a>, Bailouts<\/a>, Bank of America<\/a>, Banking<\/a>, Banking Bailouts<\/a>, Banking Industry<\/a>, banks<\/a>, BNY Mellon<\/a>, capital one financial<\/a>, Cash Injection<\/a>, CitiGroup<\/a>, CNB Financial<\/a>, credit suisse<\/a>, deposit outflows<\/a>, Discover Financial<\/a>, Downgrade<\/a>, FDIC<\/a>, Federal Reserve<\/a>, Financial Institutions<\/a>, First Republic<\/a>, First Republic Bank<\/a>, First Republic Bank downgrade<\/a>, First Republic Shares<\/a>, FRC shares<\/a>, FRC stock<\/a>, Goldman Sachs<\/a>, jpmorgan<\/a>, Junk Status<\/a>, Liquidity<\/a>, morgan stanley<\/a>, S&P 500<\/a>, Signature Bank<\/a>, Silicon Valley Bank<\/a>, Silvergate Bank<\/a>, state street<\/a>, stimulus<\/a>, Treasury<\/a>, Truist Bank<\/a>, Uninsured Deposits<\/a>, US Bank<\/a>, US Central Bank<\/a><\/div>\n<\/div>\n

What do you think about S&P Global downgrading First Republic Bank\u2019s stock to junk status on Sunday? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Sundry Photography \/ Shutterstock.com<\/em><\/p>\n

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