First Republic

2023 - 3 - 16

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Image courtesy of "NPR"

First Republic Bank becomes the latest bank to be rescued, this time ... (NPR)

The lenders including J.P.Morgan and Wells Fargo would deposit $30 billion into the beleaguered midsized lender as part of the rescue.

"There will be a careful look at what happened in the bank, and what initiated the problem," she said. has led to "a high proportion of uninsured deposits." "They don't do a lot of risky loans." That happened even after the lender said it had lined up $70 billion in new financing from both the Federal Reserve and the world's largest bank, J.P. First Republic also noted it was eligible to seek additional funding from the Fed if there were heightened demand for withdrawals. are stepping in to save First Republic Bank.

Stocks Rally as First Republic Receives a Rescue (The New York Times)

The S&P 500 jumped, along with shares of First Republic Bank and other regional lenders.

[noted Daleep Singh](https://www.pgim.com/fixed-income/blog/svb-fallout-fed-geopolitics), the chief global economist at PGIM Fixed Income. Broader markets had appeared more settled even before the news of the First Republic rescue. government bonds rose, as investors leaned toward bets that the Fed would follow the E.C.B. Even after the rally on Thursday, First Republic has lost more than 70 percent of its market value this month, wiping roughly $16 billion from its valuation. Powell, have so far said that there are no plans to do so. We expect Fed Chair Powell to pair a final rate hike next week with a message that Fed policy will then go on an extended pause, with the possibility of resuming rate hikes later — or initiating rate cuts — in the second half of the year.” “Until this week, markets had broadly ignored the threats that tightening policy was starting to uncover,” she said. Despite the broad rally on Thursday, the destabilizing volatility this week has investors braced for further stress in the financial system, stemming from the substantial shift away from a decade of low interest rates. Goldman Sachs, for example, has raised its odds that the U.S. Analysts noted that the E.C.B.’s decision took on heightened importance ahead of the Federal Reserve’s meeting next week, and yields on U.S. [rate increase from the European Central Bank](https://www.nytimes.com/2023/03/16/business/ecb-interest-rates-inflation.html), taking solace from a rebound in the share price of [Credit Suisse](https://www.nytimes.com/2023/03/15/business/credit-suisse-shares-saudi.html), the embattled European bank, after it said it would tap a lifeline from the Swiss central bank and borrow up to $54 billion. in raising its benchmark rate next week.

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Image courtesy of "CNN"

First Republic secures $30 billion rescue from large banks (CNN)

First Republic Bank, facing a crisis of confidence from investors and customers, is set to receive a $30 billion lifeline from a group of America's largest ...

Yellen first conceived of the idea of the largest US banks coming together to direct deposits toward First Republic, according to a separate source familiar with the matter. In return, the Fed will give banks the value that the banks paid for the Treasuries, which have plunged in the past year as the Fed has hiked interest rates. To make money, banks use a portion of customers’ deposits to give out loans to other customers. Many regional banks, including First Republic, have large amounts of uninsured deposits above the $250,000 FDIC limit. The facility will allow banks to give the Fed their Treasury bonds as collateral for one-year loans. That means the bank has lent out more money than it has in deposits from customers, making it a particularly risky bet for investors.

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Image courtesy of "Reuters"

Wall Street closes higher as First Republic helps lift banks (Reuters)

Concerns about banks have rattled the stock market in recent days after the collapse of SVB Financial fueled contagion fears. Meanwhile, U.S. Treasury Secretary ...

Treasury Secretary Janet Yellen said the U.S. [(META.O)](https://www.reuters.com/companies/META.O) and Snapchat operator Snap Inc [(SNAP.N)](https://www.reuters.com/companies/SNAP.N) climbed 3.63% and 7.25%, after the U.S. [(.DJI)](https://www.reuters.com/quote/.DJI) rose 371.98 points, or 1.17%, to 32,246.55, the S&P 500 [(.SPX)](https://www.reuters.com/quote/.SPX) gained 68.35 points, or 1.76%, to 3,960.28 and the Nasdaq Composite [(.IXIC)](https://www.reuters.com/quote/.IXIC) added 283.23 points, or 2.48%, to 11,717.28. Meanwhile, U.S. regional banks saga came on the heels of a 50 basis point rate hike by the European Central Bank, which earlier in the day had dampened investor sentiment already hurt by fears of a banking crisis. [(WAL.N)](https://www.reuters.com/companies/WAL.N) and PacWest Bancorp [(PACW.O)](https://www.reuters.com/companies/PACW.O) advancing 14.09% and 0.7%, respectively, following a negative start. [(.KRX)](https://www.reuters.com/quote/.KRX) gained 3.26%, while the S&P 500 banking index [(.SPXBK)](https://www.reuters.com/quote/.SPXBK) advanced 2.16%, as both sub-indexes reversed losses. [(JPM.N)](https://www.reuters.com/companies/JPM.N) and Morgan Stanley [(MS.N)](https://www.reuters.com/companies/MS.N), confirmed earlier reports they would deposit [up to $30 billion](/business/finance/us-regulators-say-deposits-into-first-republic-bank-show-systems-resilience-2023-03-16/) into First Republic Bank's coffers to stabilize the lender. [The Thomson Reuters Trust Principles.](https://www.thomsonreuters.com/en/about-us/trust-principles.html) [(FRC.N)](https://www.reuters.com/companies/FRC.N), which gained 9.98%. [(.SPLRCT)](https://www.reuters.com/quote/.SPLRCT) also contributed to the gains, helping to boost the Nasdaq Composite to its strongest performance since Feb. Register for free to Reuters and know the full story

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Image courtesy of "CBS News"

Big banks come to rescue of First Republic Bank (CBS News)

The San Francisco regional bank's stock had plunged by a third on Thursday on concerns about its financial stability.

First Republic also said that the flow of deposits leaving the bank has "slowed considerably" in recent days and that its level of "insured deposits" has "remained stable." "I can reassure the members of the committee that our banking system is sound, and that Americans can feel confident that their deposits will be there when they need them," she told lawmakers. Moody's downgraded First Republic's credit rating earlier this week, noting that the bank is "more sensitive to rapid and large withdrawals from depositors" than its peers. banks in an appearance before the Senate Finance Committee. Investors have kept a wary eye on San Francisco-based First Republic and other regional banks since California regulators seized SVB on March 10. Bank are adding $1 billion each.

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Image courtesy of "Forbes"

First Republic Stock Crashes But Bounces Back As Big Banks ... (Forbes)

First Republic shares staged a dramatic comeback Thursday after 11 major U.S. banks infused billions of dollars of capital into the struggling San ...

banks [shedding](https://www.forbes.com/sites/dereksaul/2023/03/13/bank-stock-crash-intensifies-losses-top-185-billion-as-analyst-warns-svb-failure-risks-intense-regulator-scrutiny/?sh=1d05d2e83f0f) roughly $200 billion in market capitalization over the past week. Though President Joe Biden [indicated](https://www.forbes.com/sites/dereksaul/2023/03/13/biden-says-saving-silicon-valley-bank-helped-economy-breathe-easier-but-not-all-experts-agree/?sh=787e0bad18a9) in a Monday speech the government would likely guarantee even uninsured depositors would get their money back in future failures, shareholders would not get their investments back in a scenario where a bank stock loses its value, contributing to the selloffs as equity investors look to avoid being caught holding the bag. These uninsured deposits are the “most susceptible to withdrawal,” according to the rating agency, after Silicon Valley Bank’s failure left its largest customers in limbo until federal regulators stepped in Sunday. That’s how much of First Republic’s deposits are uninsured by the Federal Deposit Insurance Corporation as they exceed the $250,000 limit, according to S&P Global Ratings. regional banking sector with more seizures and shutdowns coming,” BlackRock CEO Larry Fink [message](https://news.firstrepublic.com/news-releases/news-release-details/first-republic-bank-strengthens-and-diversifies-liquidity) that it secured $70 billion in further liquidity from the Federal Reserve and JPMorgan Chase did little to calm investors or creditors, as S&P Global Ratings and Fitch Ratings each lowered its rating for First Republic to junk on Wednesday. [Dow Drops Nearly 300 Points As BlackRock Chief Warns SVB Collapse Merely ‘First Domino To Drop’](https://www.forbes.com/sites/dereksaul/2023/03/15/dow-drops-nearly-300-points-as-blackrock-chief-warns-svb-collapse-merely-first-domino-to-drop/?sh=4915ac4159ba) (Forbes) [Biggest Bank Failure Since Great Recession Sparks ‘Overblown’ Fears Of Contagion—But Big Lingering Risks Remain](https://www.forbes.com/sites/jonathanponciano/2023/03/10/biggest-bank-failure-since-great-recession-sparks-overblown-fears-of-contagion-but-big-lingering-risks-remain/?sh=39a230b429bf) (Forbes) [Bank Stock Crash Intensifies: Losses Top $185 Billion As Analyst Warns SVB Failure Risks Intense Regulator Scrutiny](https://www.forbes.com/sites/dereksaul/2023/03/13/bank-stock-crash-intensifies-losses-top-185-billion-as-analyst-warns-svb-failure-risks-intense-regulator-scrutiny/?sh=1d05d2e83f0f) (Forbes) [wrote](https://www.blackrock.com/corporate/investor-relations/larry-fink-annual-chairmans-letter) in a Wednesday letter to investors, predicting Silicon Valley Bank’s shutdown could simply be the first “domino to fall” in the American banking system. First Republic shares staged a dramatic comeback Thursday after 11 major U.S. [reportedly moved](https://www.cnn.com/2023/03/15/economy/big-banks-deposit-spike-svb/index.html) billions of dollars in funds from regional banks to large banks such as Bank of America, though the largest bank stocks have been far from immune from suffering losses, with the 10 largest U.S. Founded in 1985, First Republic largely caters to high net worth clients and held $176 billion in deposits as of the end of 2022. [reported](https://www.wsj.com/articles/jpmorgan-morgan-stanley-and-others-in-talks-to-bolster-first-republic-4f9eeb76) large banks including JPMorgan Chase and Morgan Stanley were discussing a deal to provide liquidity to the bank, a government-led effort Bloomberg [reported](https://www.bloomberg.com/news/articles/2023-03-16/us-pushes-first-republic-rescue-with-big-banks-after-stock-slump?srnd=premium) was $30 billion.

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Image courtesy of "CNN"

First Republic obtiene un rescate de US$ 30.000 millones de los ... (CNN)

“Esta muestra de apoyo de un grupo de grandes bancos es muy bienvenida y demuestra la resiliencia del sistema bancario”, dijo este jueves el Departamento del ...

La Reserva Federal creó un sistema de préstamos diseñado para evitar que los bancos regionales quiebren después del colapso de SVB. Muchos bancos regionales, incluido First Republic, tienen grandes cantidades de depósitos no asegurados por encima del límite de US$ 250.000 de la Corporación Federal de Seguro de Depósitos (FDIC, por sus siglas en inglés). Pero First Republic tiene una relación de pasivo a depósito inusualmente alta del 111%, dice S&P Global. La instalación permitirá a los bancos dar a la Fed sus bonos del Tesoro como garantía para préstamos a un año. Las acciones de First Republic se detuvieron varias veces por volatilidad este jueves. durante un momento tumultuoso para los prestamistas.

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Image courtesy of "EL PAÍS"

La gran banca de Estados Unidos rescata al First Republic con una ... (EL PAÍS)

Un total de 11 entidades deposita fondos en el banco regional para evitar que sufra una crisis de liquidez.

En realidad, es una parte bastante pequeña de su participación y Herbert ha estado alternando compras con ventas, Como en el caso de Silicon Valley Bank, directivos de First Republic vendieron acciones por importe de cerca de 12 millones de dólares en los meses previos al desplome bursátil de la entidad. Corresponsal jefe de EL PAÍS en Estados Unidos. A diferencia de este, que contaba con startups y empresas de capital riesgo entre sus mayores clientes, First Republic ha afirmado que ningún sector representa más del 9% del total de depósitos empresariales. First Republic se especializa en banca privada y se ha convertido en una entidad de gestión de patrimonios con unos 271.000 millones de dólares en activos. El presidente de Estados Unidos, Joe Biden, se ha comprometido a que los contribuyentes no sufran pérdidas con los rescates financieros, como ocurrió con la ayuda a algunas entidades en la crisis financiera de 2008. Las acciones de First Republic se desplomaron el lunes y apenas recuperaron una parte del terreno perdido el martes. “La liquidez total disponible y no utilizada para financiar operaciones supera ya los 70.000 millones de dólares”, El domingo, el mismo día en que también Signature Bank fue intervenido por los reguladores, el banco de San Francisco dijo que había “mejorado y diversificado aún más su posición financiera”, asegurando liquidez adicional de la Reserva Federal y JP Morgan. “Hoy, 11 bancos han anunciado depósitos por valor de 30.000 millones de dólares en First Republic Bank. La operación ha sido llevada a cabo bajo el auspicio de las autoridades y supone la inyección de unos 30.000 millones de dólares en depósitos (algo más de 28.000 millones de euros al cambio actual). Los restantes 5.000 millones se los reparten otras entidades más pequeñas: PNC Financial Services, Bank of New York Mellon, Truist Financial, State Street y US Bancorp, a razón de 1.000 millones de dólares cada una.

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Image courtesy of "San Diego Union-Tribune en Español"

Fuentes: Bancos elaboran rescate para First Republic Bank (San Diego Union-Tribune en Español)

Varios bancos de Estados Unidos están elaborando un paquete de rescate de por lo menos 20.000 millones de dólares para el First Republic Bank.

La apuesta de 30.000 millones de dólares en First Republic es considerada un baluarte para evitar futuros incidentes de pánico bancario. Aunque la crisis bancaria comenzó con el Silicon Valley Bank, los reguladores dijeron a la prensa hace unos días que el apoyo del gobierno al sistema bancario se volvió necesario debido a que parecía posible que hubiera nuevos incidentes de pánico. Posteriormente, los bancos se compraron entre sí en acuerdos apresurados a fin de evitar que la crisis siguiera extendiéndose. Los 30.000 millones de dólares de depósitos no asegurados son considerados un voto de confianza en First Republic que, hasta hace una semana, frecuentemente era considerada una franquicia bancaria que despertaba la envidia del sector. La Corporación Federal de Seguro de Depósitos de Estados Unidos (FDIC por sus siglas en inglés) garantiza depósitos hasta por 250.000 dólares en cuentas individuales. Aparentemente First Republic, que al 31 de diciembre contaba con depósitos por un total de 176.400 millones de dólares, enfrentaba problemas similares.

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Image courtesy of "elEconomista"

EEUU y la gran banca rescatan First Republic Bank inyectando ... (elEconomista)

Los bancos más grandes del país han acordado un plan conjunto para inyectar 30.000 millones de dólares en First Republic Bank, en un esfuerzo coordinado por ...

Una eventual caída de este banco con sede en San Francisco sería más sonora que la de su homóloga de Silicon Valley. Lo cual, en opinión de los analistas, desatará "una gran volatilidad a corto plazo en los bancos regionales". Pese a todo la compañía afirmaba en el día de ayer que sus posiciones siguen siendo sólidas y que contaba con una liquidez de 65.000 millones de euros disponible. First Republic Bank se antojaba hasta el momento como la próxima víctima de una serie de colapsos bancarios que ya se ha llevado a Silicon Valley Bank y a Signature Bank. First Republic Bank fue una de las principales firmas de esta lista con una caída del 72% en bolsa desde la semana pasada. Sin embargo solo en cuestión de minutos tras conocerse la noticia ha dado un salto del 50% y ha pasado de fuertes caídas a una sólida subida al cierre de la sesión del 10,33%.

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