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First Republic Bank shares plunge as rescue efforts fall flat | LiveNOW from FOX
First Republic Bank shares continued to decline sharply on Friday, adding to the uncertainty about the bank's future. The company’s stock price dropped more than 43% to $3.51 per share. First Republic has failed to fully stabilize itself since it became engulfed by the crisis that led to the failure of Silicon Valley Bank in California and Signature Bank in New York in March. FOX Business' Connell McShance joined LiveNOW's Andrew Craft to discuss the problems facing First Republic Bank and how experts in the financial industry are reacting. More LiveNOW from FOX streaming video
Shares of First Republic Bank remain in a death spiral amid reports of uncertainty about whether the lender could see a rescue deal.
First Republic's stock tumbled as much as 50% in midday trading. The bank’s share value has already plummeted roughly 96% year to date and just more than 70% the last month amid federal discussions with banks and even private equity groups over a rescue solution for the distressed lender.
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Reuters reported Friday, citing people familiar with the situation, that officials from the Federal Deposit Insurance Corporation (FDIC), the Treasury Department and Federal Reserve are coordinating talks to rescue First Republic. Private-sector efforts have yet to yield a deal.
FILE - A pedestrian walks by First Republic Bank on March 13, 2023 in Millbrae, California. (Liu Guanguan/China News Service/VCG via Getty Images)
The Federal released its assessment Friday morning of what led to Silicon Valley Bank’s collapse, saying the lender's failure was due to a "textbook case of mismanagement" and calling for greater supervision by regulators.
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Meanwhile, the FDIC will release a separate report detailing the findings of an internal review of its supervision of the former Signature Bank.
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FOX Business' Breck Dumas contributed to this report