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> Economy

Pressure mounts on First Republic as its stock continues to plunge

The bank’s price dropped more than 16%, after plummeting 49% Tuesday

Newsroom April 26 05:01

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The stock of First Republic (FRC) plunged again Wednesday morning as pressure on the San Francisco lender intensified following a depositor exodus in March and new attempts to sell some of its underwater assets.

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The bank’s price dropped more than 16%, after plummeting 49% Tuesday, before being halted for volatility. Other regional bank stocks were up, reinforcing First Republic’s predicament. They include PacWest (PACW), which said Tuesday it gained back some deposits in April after losing billions during the first quarter. Its stock was up 15%.

First Republic is now considering a variety of alternatives to save itself without being seized by US regulators, according to media reports, from the creation of a so-called “bad bank” to divesting $50 billion to $100 billion of long-dated securities and mortgages to make an eventual capital raise easier. It said Monday that it was pursuing “strategic options” after losing more than $100 billion in deposits during last month’s banking system turmoil.

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