First Republic bank had, on Sunday, assured that it had $70 billion in unused liquidity to fund operations.
In what seems like aftermath, San Francisco-based regional lender First Republic Bank's share plunged about 60 percent in pre-market trading on Monday.15 percent on Friday to $81.76 apiece. They slumped 65 percent in pre-market trade on Monday at 4.48 am. ET. The bank's stock is down 33 percent so far this year.
Jim Herbert, Founder and Executive Chairman, and Mike Roffler, CEO and President of First Republic Bank, said, "First Republic's capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks. As we have done since 1985, we operate with an emphasis on safety and stability at all times while maintaining a well-diversified deposit base.
The statement further said that this 'strengthens First Republic's existing liquidity profile. The total available, unused liquidity to fund operations is now more than $70 billion.' The news of fresh financing acquired by the bank clearly failed to assure the investors, reflecting heightened investor anxiety following the collapse of the startup-friendly Silicon Valley Bank.
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