First Republic Bank is in a fight for its survival. “It’s becoming clearer each day” that First Republic is “toast,” said Don Bilson at Gordon Haskett, in a note Wednesday. First Republic CEO Michael Roffler attempted to assure investors in an earnings call Monday that the bank had enough liquidity to do that. That’s what happened to Silicon Valley Bank on March 10 when the California Department of Financial Protection and Innovation took possession of and closed Silicon Valley Bank and on March 12 Signature Bank was closed by the New York State Department of Financial Services. A lower rating would hinder the bank’s ability to use the Fed’s overnight lending program and an emergency lending program launched last month in the wake of Silicon Valley Bank’s collapse to prevent further turmoil.

Source: CNN April 27, 2023 13:03 UTC