(Bloomberg) — First Republic Bank and PacWest Bancorp both plunged Friday as the upheaval at SVB Financial Group spread to other lenders.
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Shares of First Republic tumbled 51% to $47.25 at 9:49 a.m. in New York, while PacWest dropped 37%, triggering trading halts for both.
SVB, the parent of Silicon Valley Bank, plunged as much as 69% ahead of the US market open, before trading in the stock was halted pending news. On Thursday, the shares plummeted 60%, fueling a 7.7% drop in the KBW Bank Index, while First Republic and PacWest also posted record one-day declines.
“The funding pressures facing SIVB are highly idiosyncratic and should not be viewed as a read-across to other regional banks,” Morgan Stanley analysts led by Manan Gosalia said in a note Friday. “That said, we have always believed that SIVB has more than enough liquidity to fund deposit outflows related to venture capital client cash burn.”
–With assistance from Maxwell Zeff.
(Updates share prices in second paragraph.)
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Source: https://finance.yahoo.com/news/first-republic-pacwest-plunge-amid-145524735.html