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Market News- First Republic Bank shares lost around 96% in 2023.
- The US government is in urgent talks about the rescue deal.
Before the US market could recover completely from the bank collapse, another major bank crisis occurred in the US. After the continuous collapse of Silicon Valley Bank and Signature Bank, the shares of First Republic Bank dropped to their lowest level after losing half of their value.
The stock price of the bank fell from $122 on the 1st of March to an all-time low of $3.6. Shares of the bank are down approximately 96% since the start of the year. The stocks have witnessed a decline of more than 50% in the midday of trading and more than 70% since last month.
Moreover, the price decline continues amid rumors of the government’s plan to rescue the bank. The First Republic Bank lost more than $21 billion in market value this year. Kevin O’Leary, a Canadian businessman, stated that the bank is going to be zero.
After the continued decline of the bank, US government officials have been in urgent talks about the rescue deal. The government’s interference has persisted while the bank is working to find and fix its dropping price. If the bank continues to fall, it is expected to enter FDIC receivership.
Additionally, Reuters reported that the US government is preparing for the immediate takeover of First Republic Bank.
Source: https://thenewscrypto.com/first-republic-bank-is-set-to-be-taken-over-by-the-us-government/