First Republic Bank is exploring its options, including a possible sale -Dlight News

First Republic leads big rally in regional banks, while United Airlines cuts on profit warning

Embattled First Republic Bank is exploring its strategic options, including a potential sale, according to a new report. Citing sources with knowledge of the matter, Bloomberg News reported late Wednesday that the San Francisco-based bank is also looking for ways to improve its liquidity, noting that a potential sale would draw interest from larger rivals. The report added that no decision had been reached and that the First Republic could decide to remain independent. A spokeswoman for First Republic declined to comment to MarketWatch. Earlier Wednesday, S&P Global Ratings downgraded First Republic’s debt rating to “junk,” while Fitch Ratings also issued a downgrade. See more: First Republic Bank has been downgraded to ‘junk’ by S&P and Fitch on fears that further deposit flight will hurt profitability, First Republic stock FRC, -21.37% fell 21.4% to end trading on Wednesday at $31.16, an 11-year low. is Its shares tumbled 73% in the past five trading days as mid-sized banks were rocked by the sudden failure of Silicon Valley Bank and Signature Bank of New York. On Sunday, FirstRepublic said it had the Federal Reserve and JPMorgan Chase & Co. JPM, -4.72% strengthened its financial position with “excess liquidity,” giving it more than $70 billion in unused liquidity. “The additional borrowing capacity…enhances, diversifies and further strengthens First Republic’s existing liquidity profile,” the bank said in a statement on Sunday.

Source link