Another US bank in deep trouble

Another US bank in deep trouble

NOS newsEdited

The banking crisis in the United States doesn’t seem over yet: For the third time in a month, a mid-sized bank is threatening to collapse. It is listed on the New York Stock Exchange Share of First Republic Bank The plunge came after it emerged last month that savers had withdrawn as much as $100 billion from the San Francisco bank.

First Republic Bank was already in deep trouble last month, as fellow city-dweller Silicon Valley Bank (SVB) and Signature Bank of New York went bankrupt. Eleven banks came to the rescue of a third troubled bank with a capital injection of more than $30 billion. Without that support, First Republic Bank would have collapsed immediately, according to today’s new quarterly figures.

Due to which the customers are not relieved. The outflow of savings has been so high that spooked analysts have advised investors to sell their holdings in First Republic Bank. Plans to cut costs by laying off a quarter of staff and selling off poorly performing loans have also not allayed concerns.

Especially wealthy clients

After the stock market closed, the stock lost almost half its value. At $9.19, it was worth a fraction of the $150 it was two months ago at $9.19.

First Republic Bank was established in 1985 and has mainly wealthy clients. Facebook founder Mark Zuckerberg will be present at the bank. Customers with assets over $250,000 fall outside the American Deposit Guarantee Program. If people hold savings above this limit, everything will go up in smoke if First Republic Bank goes bankrupt.

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