Survive

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">First Republic Bank’s (FRC) stock has somewhat recovered in Friday premarket on <a aria-label="the reports (opens in a new tab)" href="https://www.bloomberg.com/news/articles/2023-04-28/first-republic-shares-gain-on-reports-of-potential-rescue-plans?srnd=all&amp;leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">the reports</a> that the bank’s advisers and the US government are looking at private-sector solutions to prevent the bank from being shuttered by regulators. Shares were up more than 4.5% in the market pre-open.</p> 
<h3 id="us-government-and-frc-advisers-initiate-urgent-talks-to-help-frc-survive">US Government and FRC Advisers Initiate Urgent Talks to Help FRC Survive</h3> 
<p>Shares of First Republic Bank are up over 4.5% in premarket trading Friday as US officials engage in urgent talks to discuss possible rescue options for the embattled lender. The stock stood at $6.49 per share before the Friday trading session.</p> 
<p>According to Bloomberg, First Republic’s advisers are working to hash out a private-sector solution that would allow the San Francisco, California-based bank to remain afloat. In the meantime, US officials are also in talks with the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve, and the Treasury Department over possible rescue deals for FRC, <a aria-label="Reuters reported (opens in a new tab)" href="https://www.reuters.com/business/finance/us-officials-lead-urgent-rescue-talks-first-republic-sources-2023-04-28/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">Reuters reported</a> on Friday.</p> 
<p>The US government is reportedly looking to bring more institutions, such as private equity firms and banks, and get them involved in the bailout. However, it is currently not clear whether the government is planning to take part in the rescue, though its engagement has already encouraged the FRC’s executives to establish a plan to help the bank survive the ongoing storm, Reuters’s sources said.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="what-happened-to-first-republic-bank">What happened to First Republic Bank?</h3> 
<p>The move comes after the <a href="https://tokenist.com/first-republic-closes-49-down-after-fears-of-federal-receivership-emerge/" rel="dofollow" class="deco-link">bank’s stock</a> lost 95% of its value since the start of the year amid struggles to recover from the banking turmoil in the wake of multiple high-profile collapses in March. Specifically, the <a href="https://tokenist.com/signature-bank-shut-down-by-us-regulators-over-systematic-risk-fears/" rel="dofollow" class="deco-link">US regulators shut down</a> Silicon Valley Bank (SVB) and Signature Bank last month due to “systemic risk.” Similarly, the turmoil dealt a final blow to the troubled Swiss lender, Credit Suisse, forcing Switzerland’s authorities to orchestrate a <a href="https://tokenist.com/why-credit-suisses-ubs-deal-seems-like-an-extraordinary-bailout/" rel="dofollow" class="deco-link">rescue buyout by its rival UBS</a>.</p> 
<p>The commotion in the sector, described by economists as the worst banking crisis since 2008, put severe pressure on FRC, resulting in unprecedented investor withdrawals. Consequently, the bank reported <a aria-label="Q1 results (opens in a new tab)" href="https://ir.firstrepublic.com/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">Q1 results</a> earlier this week, showing that its deposits declined by $100 billion during the quarter ending on March 31, while net income fell by a third.</p> 
<p>Despite the turmoil, the bank consistently reassured investors that it would be able to overcome the challenges, though significant cutbacks are needed, including a “significant” cut in executive pay and a 25% workforce reduction by mid-2023. The bank expects these measures to help it stabilize its “deposit base and the strength of our credit quality and capital position,” it said in a press release.</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><em><strong>Do you think the First Republic will survive the current commotion with the US government stepping in? Let us know in the comments below.</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/frc-recovers-in-premarket-as-government-and-advisers-explore-rescue-options/">FRC Recovers in Premarket as Government and Advisers Explore Rescue Options</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

FRC Recovers in Premarket as Government and Advisers Explore Rescue Options

목차

Tokenist

2023년 4월 28일에 게재된 다른 기사

Bitcoin remains stable at $29,300 ahead of FOMC Meeting – Analysts speculate whether $35,000 or $...

Coinbase Execs Respond to SEC’s Wells Notice in Person and on Video

Taiwan’s traditional banks to offer crypto trading services

Robinhood reveals fiat-to-crypto on-ramp, competing with Coinbase Pay and MoonPay

Hong Kong's SFC to Regulate Crypto Market with New Guidelines

CryptoUK Publishes Response to HMT Cryptoasset Consultation Paper

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!