The shares of the bank, which was mentioned in the crisis in the USA, fell close to 50%
First Republic Bank’s stock plunged sharply after the bank’s first-quarter balance sheet announced on Monday as hopes for a bailout that could keep the bank afloat dwindled.
After the news that the US Federal Deposit Insurance Corporation (FDIC) could appoint a trustee to the bank, the bank’s shares lost nearly 50 percent of its value.
While the bank’s share price fell heavily on Tuesday and Wednesday, it gained nearly 9 percent yesterday.
On the other hand, there were reports in the country’s press that the US authorities coordinated the talks after the private sector efforts to save the First Republic had not yet resulted in an agreement.
– Deposits decreased by over 40 percent
Last month, the First Republic Bank also experienced financial difficulties after the bankruptcy of Silicon Valley Bank (SVB) and Signature Bank in the USA.
In mid-March, 11 major banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, announced that they would transfer a total of $30 billion in deposits to support First Republic Bank and prevent the spread of bank runaways by restoring confidence in the banking sector.
First Republic’s balance sheet for the first quarter of the year revealed that the bank’s deposits decreased by 40.8 percent as of the end of March compared to the end of last year, despite the $30 billion from major US banks.
In the statement made by the bank, it was stated that the deposit activity stabilized as of the week of March 27 and remained stable until April 21.