OUT OF MIND
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Latest topics
» Is it possible to apply positive + in favor Newton III Motion Law as a dynamic system in a motor engine
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptySat Mar 23, 2024 11:33 pm by globalturbo

» Meta 1 Coin Scam Update - Robert Dunlop Arrested
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptySat Mar 23, 2024 12:14 am by RamblerNash

» As We Navigate Debs Passing
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Jan 08, 2024 6:18 pm by Ponee

» 10/7 — Much More Dangerous & Diabolical Than Anyone Knows
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyThu Nov 02, 2023 8:30 pm by KennyL

» Sundays and Deb.....
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptySun Oct 01, 2023 9:11 pm by NanneeRose

» African Official Exposes Bill Gates’ Depopulation Agenda: ‘My Country Is Not Your Laboratory’
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyThu Sep 21, 2023 4:39 am by NanneeRose

» DEBS HEALTH
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptySun Sep 03, 2023 10:23 am by ANENRO

» Attorney Reveals the “Exculpatory” Evidence Jack Smith Possesses that Exonerates President Trump
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyTue Aug 29, 2023 10:48 am by ANENRO

» Update From Site Owner to Members & Guests
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyTue Aug 29, 2023 10:47 am by ANENRO

» New global internet censorship began today
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 21, 2023 9:25 am by NanneeRose

» Alienated from reality
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 4:29 pm by PurpleSkyz

» Why does Russia now believe that Covid-19 was a US-created bioweapon?
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 4:27 pm by PurpleSkyz

»  Man reports history of interaction with seemingly intelligent orbs
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 3:34 pm by PurpleSkyz

» Western reactions to the controversial Benin Bronzes
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 3:29 pm by PurpleSkyz

» India unveils first images from Moon mission
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 3:27 pm by PurpleSkyz

» Scientists achieve nuclear fusion net energy gain for second time
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 3:25 pm by PurpleSkyz

» Putin Signals 5G Ban
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 3:07 pm by PurpleSkyz

» “Texas Student Dies in Car Accident — Discovers Life after Death”
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 3:05 pm by PurpleSkyz

» The hidden history taught by secret societies
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 3:03 pm by PurpleSkyz

» Vaccines and SIDS (Crib Death)
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 3:00 pm by PurpleSkyz

» Sun blasts out highest-energy radiation ever recorded, raising questions for solar physics
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptyMon Aug 07, 2023 2:29 pm by PurpleSkyz

» Why you should be eating more porcini mushrooms
Bank collapse contagion? Customers line up to take their money out of First Republic Bank EmptySun Aug 06, 2023 10:38 am by PurpleSkyz


You are not connected. Please login or register

Bank collapse contagion? Customers line up to take their money out of First Republic Bank

Go down  Message [Page 1 of 1]

PurpleSkyz

PurpleSkyz
Admin

Bank collapse contagion? Customers line up to take their money out of First Republic Bank


03/14/2023 / By Arsenio Toledo
https://citizens.news/707480.html

Bank collapse contagion? Customers line up to take their money out of First Republic Bank Loss-Money-Graph-Bankruptcy-Down-Negative-Lose

Customers of First Republic Bank in Southern California are lining up outside bank branches, eager to withdraw their funds in the wake of the collapse of Silicon Valley Bank (SVB).
SVB’s collapse has raised fears that First Republic could suffer a similar bank run that could lead to its own demise. Analysts have even pointed out the similarities between SVB and First Republic’s estimated value of assets versus actual value. (Related: Silicon Valley Bank has now collapsed, and 95% of deposits were uninsured.)
This fear led to First Republic losing 33 percent of its value during the week SVB collapsed, and another 61.8 percent on Monday, March 13.
First Republic is the 14th largest bank in the United States, with more than $213 billion in reported assets. Like SVB, the bank heavily relies on customer deposits. In SVB’s case, it was technology startups and venture capital investors. In First Republic’s case, it is wealthy individuals, many of whom are now deciding to trust other banks with their savings and assets.

Several branches already reporting bank runs following SVB crash

The bank, founded in San Francisco in 1985, has 80 branches in 11 states nationwide, with most branches concentrated on the West and East coasts. Several bank branches have already reported bank runs caused by dozens of customers lining up early in the morning to withdraw their assets or close their accounts entirely.
The bank runs began on Saturday, March 11, the morning after Silicon Valley Bank collapsed and was seized by federal authorities. At least four First Republic branches have reported bank runs, including two branches in Los Angeles – one on the outskirts of the city and another along San Vicente Boulevard – as well as a branch in San Francisco and in neighboring Brentwood.

First Republic executives spent the entire weekend attempting to reassure their clients that their money is safe. The bank released a statement saying “the additional borrowing capacity from the Federal Reserve, continued access to funding through the Federal Home Loan Bank and ability to access additional financing through JPMorgan Chase and Company increases, diversified and further strengthened First Republic’s existing liquidity profile.”
“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” said founder Jim Herbert and CEO Mike Roffler in a statement.

Other banks experiencing declines in shares following SVB collapse

In light of SVB’s collapse, several other banks have also reported declining bank shares. This includes PacWest Bancorp, whose shares dropped 45 percent, and Western Alliance Bancorp, which lost more than 47 percent of its share value.
They are followed by Zions Bancorporation and KeyCorp, whose shares fell 26 percent and 27 percent, respectively. Other financial firms reporting added pressures following SVB’s collapse include Bank of America, whose value slipped by nearly six percent, and Charles Schwab, which tumbled more than 11 percent.
These banks, along with First Republic, experienced several trading halts throughout the day as shares tumbled quickly. First Republic is currently down 67 percent, with a share costing $28.05. On Friday, March 10, a share was worth around $47.45.
“The real issue for the industry is that there is a crisis of confidence in the stickiness of deposits and when that becomes dislocated, things can move very quickly,” said Christopher McGratty, head of U.S. Bank Research at investment bank KBW.
Citi analyst Keith Horowitz noted that other banks with a high degree of uninsured deposits, like SVB, could be at risk of large withdrawals within the next few weeks.
“We believe regionals with less diversified and large uninsured deposit bases are at risk of deposit flight, but not at the speed of SVB and they should have time to tap wholesale funding markets … and raise cash levels,” wrote Horowitz in a note to clients. “In a fragile environment like we are in, we believe banks should be cautious about the potential negative signaling effect of raising deposit rates to keep deposits.”
Learn more about bank failures, especially Silicon Valley Bank’s sudden demise, at Risk.news.
Watch this clip from “Wake Up America” on Newsmax as host Carl Higbie and guest media strategist Dennis Kneale discuss how Silicon Valley Bank’s sudden collapse is a warning for the state of the American economy.



THANKS TO: https://www.newstarget.com/2023-03-14-bank-collapse-customers-take-savings-first-republic-bank.html

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum