First Republic Bank’s shares closed down 50% on Tuesday after the bank reported a more than $100bn plunge in deposits in the aftermath of last month’s banking crisis. The San Francisco-based bank faces tough options to turn around its business, including the creation of a “bad bank” or asset sales possibilities. The bad bank possibility is a crisis-type method of isolating financial assets that have problems. Although deposits have stabilised since quarter-end, analysts at Piper Sandler said that the company’s liquidity questions had turned into earnings questions. Last month, concerns about the bank’s health had prompted top power brokers to put together an unprecedented $30bn rescue deal.

Source: The Guardian April 26, 2023 03:37 UTC