- First Republic stock fell 25% Friday despite a $30 billion Wall Street rescue package.
- The shares rallied 10% Thursday after 11 banks led by JPMorgan stepped forward to bolster the lender.
Shares in embattled $4 fell over 25% Friday despite a $30 billion lifeline from 11 of America's biggest banks.
The banks, led by JPMorgan, Bank of America, Citigroup, and Wells Fargo, said Thursday they would $4 into First Republic.
The San Francisco-based lender's stock rose to close 10% higher Thursday after the news. Fears eased that it would suffer a bank run, where customers rush to pull their deposits, given the fresh injection of cash.
But shares of First Republic swung lower in Friday, sinking 26% to $25.26 at last check.
The slide came after $4 and it would concentrate on cutting down on borrowings.
First Republic also said its cash position was around $34 billion, excluding the Wall Street $30 billion. It noted it borrowed up $109 billion from the Federal Reserve between last Friday and Wednesday this week, when the banking sector and markets were rattled by the failure of Silicon Valley Bank.
On Friday, $4, just a week after regulators shut down its bank, once its main business.
First Republic $4 that beset SVB.
At the end of last year, they both booked a high share of uninsured deposits — 94% for SVB, and 68% for First Republic. These are deposits unprotected by the FDIC's insurance limit of $250,000 per account.
At the same time, they have worryingly high unrealized losses. SVB is sitting on about $16 billion and First Republic has $4.8 billion on its held-to-maturity bond book.
On Sunday, First Republic said its liquidity position $4. In addition, it said in a regulatory filing it had received $70 billion of liquidity from the Fed and JPMorgan Chase.
The bank's credit had earlier been $4 by ratings agencies S&P and Fitch.
First Republic shares have dropped 69% over the past five trading sessions, and they are down about 85% year to date.