Is First Republic Bank ($FRC) Siezed?

Is the US Banking Crisis over yet

Let us discuss that

America’s biggest bank J P Morgan took First Republic Bank with $10.6bn (£8.5bn).

Is the Crisis over now

has played down the risk of a spiralling banking crisis 

It can not be ruled out. The crisis is not over yet

Major customers pulled $100 billion worth of deposits out of the bank in March 2023.

This fueled fresh concerns about the health of the US banking system as a whole.

What happened?

What happens if First Republic Bank fails?

The bank will fire 20 to 25% of employees as part of an effort to shrink its balance sheet and stay afloat.

Eventual government receivership for the ailing bank after it exhausts private sector solutions.

Fight to Save itself

First republic bank is proposing other Big Banks purchase bonds from First Republic at above-market rates for a loss of a few billion dollars.

Looking Back

Last month (March 2023) Silicon Valley Bank and Signature collapsed due to lack of funds in the bank. 

The US government seized both banks.

Eventually First Citizens Bank agreed to buy most of Silicon Valley Bank 

First Republic Bank receive a $30 billion lifeline from a group of America’s largest banks.

In March 2023 - The crisis began

The major banks include JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and Truist.

FDIC may seize the bank to avoid any emergency situation

As a last effort, the bank is asking investors to buy bonds for more than they are worth. 

That will save the bank and other parties will step up to help the bank recapitalize itself.

About First Republic Bank

First Republic Bank is a financial company that operates through Commercial Banking and Wealth Management segments.

First Republic Bank ranks 297th in the Financial System Benchmark

Where is first republic bank located?

Established in 1985, the First Republic Bank (NYSE: FRC) is located in San Francisco, California, USA.

First republic bank asset size

Data as of March 31, 2023 $ in Billions

First Republic Bank Asset Size

Total wealth management assets were $289.5 billion on March 31, 2023, up 6.7% compared to the prior quarter

This included investment management assets of $118.9 bln, brokerage assets and money market mutual funds of $149.7 bin, and trust and custody assets of $20.9 bin.

First Republic Bank Stock (FRC) is down by 95% from $120 on 1st March 2023 to $5.69 on 25th April 2023. 

Within a week the stock was down over 50% from $12 on 21st March to $5.69 on 25th March.

First Republic Bank (FRC) stock Performance

Final Word

The issue at First Republic Bank reopened the woes of the crisis again.

The trouble around the First Republic Bank is clearly saying that the banking crisis is not over yet. 

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