First Republic Bank (FRC) stock jumps over 30% at market open

The stock of First Republic Bank (NYSE: FRC), which had been trading at a low point throughout Monday’s session, rose sharply during the early trading on Tuesday, March 21. 

The decision comes after it was reported that Jamie Dimon, CEO of JPMorgan Chase, is spearheading conversations with other bank CEOs regarding a rescue plan for the business. 

Shares of First Republic have risen as much as 32% to trade at $16.06 as the market opened, a stark contrast to the 47% shares fell by just a day earlier.

Jamie Dimon discusses strengthening First Republic Bank

Jamie Dimon is carrying out conversations with the Chief Executive Officers of other major banks about new initiatives to strengthen the struggling First Republic Bank. 

According to persons acquainted with the situation, the negotiations, which are still in the early stages, have centered on the many ways the sector may organize an investment that would increase the bank’s capital. One of the possibilities that have been brought up is for the banks to invest in First Republic. 

This week, eleven major financial institutions collaborated to restore trust in the financial institution First Republic by making a deposit of $30 billion. Earlier this month, clients of the bank situated in San Francisco withdrew around $70 billion in cash since the failure of Silicon Valley Bank earlier this month. 

Some sources claimed that the idea might entail the banks turning part or all of the $30 billion in deposits into a capital injection. First Republic is under great pressure to demonstrate to investors that it can remain in business.

Notably, over $100 billion has left the five largest U.S. banks’ market cap in 2023, with the banking crisis claiming several casualties, taking a toll on investor sentiment. Interestingly, Bitcoin (BTC) appears to be the winner of the crisis, with the maiden cryptocurrency attracting $220 billion to its capitalization since the turn of the year, dwarfing traditional financial players.