{"id":20270,"date":"2023-04-26T18:54:50","date_gmt":"2023-04-26T18:54:50","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-banking-industry-still-struggling-as-first-republic-bank-shares-plummet-by-over-30-bitcoin-news\/"},"modified":"2023-04-26T18:54:50","modified_gmt":"2023-04-26T18:54:50","slug":"us-banking-industry-still-struggling-as-first-republic-bank-shares-plummet-by-over-30-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-banking-industry-still-struggling-as-first-republic-bank-shares-plummet-by-over-30-bitcoin-news\/","title":{"rendered":"US Banking Industry Still Struggling as First Republic Bank Shares Plummet by Over 30% \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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In the midst of a tumultuous week, First Republic Bank is struggling to regain its footing in the financial world. Reports have surfaced that the bank is poised to enter government receivership due to a massive outflow of $100 billion in customer withdrawals last month. This has prompted investors to flee the bank, causing its shares to dive-bomb by over 50% on Tuesday.<\/strong><\/p>\n

Shares From America\u2019s 14th Largest Bank Decimated Over the Last Two Days<\/h2>\n

The situation only worsened<\/a> as pre-market trading began, and by 11:00 a.m. on Wednesday, First Republic Bank\u2019s shares had fallen by over 30%<\/a>. The decline in market capitalization has been a major concern for investors, who are increasingly worried about the bank\u2019s stability and future prospects.<\/p>\n

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SCOOP (1\/2): Bankers working w @firstrepublic<\/a> bank say they expect eventual govt receivership for the ailing bank after it exhausts private sector solutions such as asset sales and finding a buyer, both of which appear difficult. Officials at the big banks believed the Feds were<\/p>\n

\u2014 Charles Gasparino (@CGasparino) April 25, 2023<\/a><\/p>\n<\/blockquote>\n

Sources close to the matter have indicated that the banks which injected $30 billion<\/a> into First Republic Bank may need to step in and provide additional assistance. Advisors to the banks have stated that failure to do so would result in a greater cost down the line. It is expected that the advisors to First Republic Bank will make a plea to the larger U.S. banks to provide further support.<\/p>\n

The troubled bank has already taken significant steps to address its financial challenges, including the sale of assets and a significant reduction in its workforce, with 7,200 employees being laid off. However, it remains to be seen if these measures will be sufficient to restore investor confidence and ensure the bank\u2019s long-term viability.<\/p>\n

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The only question remaining about First Republic Bank $FRC<\/a> is whether or not they make it to Friday when banks are usually closed by the FDIC.pic.twitter.com\/wGTYC2mYwi<\/a><\/p>\n

\u2014 Wall Street Silver (@WallStreetSilv) April 25, 2023<\/a><\/p>\n<\/blockquote>\n

The banks\u2019 advisors reportedly disclosed that if they are not helped, the system will \u201cpay more later when it fails,\u201d according<\/a> to CNBC. \u201cAdvisors to First Republic will attempt to cajole the big U.S. banks who\u2019ve already propped it up into doing one more favor,\u201d CNBC\u2019s Hugh Son reported. Others have blamed a specific demographic of First Republic Bank\u2019s customers for its downfall.<\/p>\n

\u201cWealthy clientele such as the affluent individuals that banked at [First Republic] have no loyalty to any particular financial adviser,\u201d Chris Whalen, chairman of Whalen Global Advisors, stated in a note received<\/a> by CBS News. \u201cFirst Republic was one of many advisers and service providers to their wealthy customers, people who find products like interest-only mortgages attractive,\u201d Whalen added.<\/p>\n

After dropping more than 30% on Wednesday, First Republic Bank\u2019s shares managed to rise and currently, the stock is down between 21% to 26%<\/a> after the rebound. Still, there\u2019s another half day of Wall Street trading and First Republic Bank stock will be watched closely. Reports further detail<\/a> that the bank\u2019s stocks were halted<\/a> due to volatility this afternoon.<\/p>\n

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asset sales<\/a>, Banking Industry<\/a>, Customer Withdrawals<\/a>, economic stability<\/a>, financial challenges<\/a>, First Republic Bank<\/a>, FRC<\/a>, FRC collapse<\/a>, government receivership<\/a>, investor confidence<\/a>, Market Capitalization<\/a>, Stock Market<\/a>, U.S banks<\/a><\/div>\n<\/div>\n

What do you think the future holds for First Republic Bank, and do you believe that the steps taken by the bank thus far will be enough to restore investor confidence? Share your thoughts in the comments 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 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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