First Republic Bank shares halted for trading
First Republic Bank Shares were halted for trading on Wednesday after it plunged 39.2%, shedding half their value yesterday
The New York Stock Exchange halted trading in the stock of First Republic Bank shares on Wednesday after it plunged 39.2%. The lander shedded half its value yesterday amid fears that the regional firm could become the third bank to fail following the collapse of Silicon Valley Bank and Signature Bank.
The lenders shares were last down 20% at $6.51, after losing nearly half of their value on Tuesday. Since the year's start, the shares have shed 95% of their value, or a loss of more than $21 billion.
Earlier, on Monday the lender said a group of large banks have stepped in to save it by depositing $30 billion in uninsured deposits.
Also Read | First Republic Bank shares hit record low, plans mass layoff at year end
The bank now is looking at several options, and is also planing to sell off unprofitable assets, including low interest mortgages it provided to wealthy clients. It also has plans to layoff up to a quarter of its workforce, which totaled about 7,200 employees at the end of last year, news agency AP reported.
The bank will also shrink its corporate office footprint, cut executives' compensation by a significant amount and eliminate nonessential projects, the reports say.
Citi analyst downgraded First Republic on Wednesday, saying in a note to clients that there's still a large level of uncertainty in outcomes and expected losses beyond the next year.
At least three brokerages have cut their price targets on First Republic's shares since it reported first-quarter earnings on Monday.
First Republic reported first-quarter results Monday that showed it had $173.5 billion in deposits before Silicon Valley Bank failed on March 9. On April 21, it had deposits of $102.7 billion, which included the $30 billion the big banks deposited. It said since late March, its deposits have been relatively stable.
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First Published:26 Apr 2023, 08:36 PM IST
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