First Republic Bank shares plunge, prompting trading halt as startups process SVB crash
By Editor - Mon Mar 13, 10:16 am
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Shares of First Republic Bank fell sharply in early trading this morning, which caused trades of the company to be paused due to volatility, implying investor discomfort with the financial institution despite government activity over the weekend to sort the Silicon Valley Bank crisis and potential cascading effects. The volatility comes just days after a stock market selloff that previewed SVB’s failure, as concern of contagion remains among analysts and the tech community more broadly. As of the time of writing, equity shares of First Republic are off more than 65%, and trading has been halted as mentioned. In an attempt to get ahead of investor concern, over the weekend First Republic announced that it had raised its financial position through “additional liquidity” raised from the Federal Reserve and JPMorgan Chase. Per the company’s statement on March 12, it had “more than $70 billion” in unutilized liquidity “to fund operations.” Presumably that’s the capital standing against the company’s selloff, and a potential loss of investor confidence. As the SVB dust begins to settle, what’s ahead for startups, VCs, and the banking industry? The question ahead of every startup and small business that lost faith in the stability of financial institutions over the past week is straightforward: Where’s a safe place to park my money? First Republic Bank is one of those options since the death of SVB, which claimed in 2022 that it banked half of all U.S
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First Republic Bank shares plunge, prompting trading halt as startups process SVB crash
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