- First Republic Bank Shares Crash To Record Low On Share-Sale Report
by Tyler Durden, https://www.zerohedge.com/
For a few brief hours yesterday, some market participants breathed a sigh of relief as the ‘big banks’ threw $30 billion of deposits to the ‘small banks’ (specifically First Republic Bank) and saved the world.
Today wrecked that dream as regional bank shares continued their recent and rapid demise with First Republic Bank – which had just been saved – leading the charge lower (after rallying yesterday afternoon).
Now, after the market has closed on a Friday evening (St.Patricks’ Day no less), NY Times reports that the bank – freshly stuffed with $30 billion of the big banks’ cash – is in talks to raise money from other banks or private equity firms by issuing new shares, in a desperate bid to bolster its finances.
We wish them luck in their efforts as Wedbush analyst David Chiaverini – who lowered First Republic to neutral today, warned that it’s difficult to “come up with a realistic scenario where there’s residual value for FRC common equity holders” in the event of a sale.
According to three people with knowledge of the process, the terms of the deal are unknown but a full sale of the bank is apparently possible. First Republic Bank shares are extending losses in the after-market…