First Republic Bank’s shares slumped 17% in extended trading on Thursday|First Republic Bank|Tdorante10|CC BY-SA 4.0
Around 11 Wall Street giants infused $30 billion into First Republic Bank to shore up investors’ confidence in the US banking system.
But Republic’s shares slumped 17% in extended trading on Thursday, despite banking behemoths like JPMorgan Chase, Citigroup, Wells Fargo, Bank of America and Goldman Sachs Group coming to its rescue.
Why?
The low came after First Republic revealed in a filing that it will be suspending its dividend. It also said the bank has borrowed around $120 billion from the Federal Reserve and the Federal Home Loan Bank in the past 10 days
Not only First Republic
In the past week alone,
- US banks have borrowed $152.85 billion from the Fed lending program, surpassing the previous weekly high from the 2008 financial crisis.
- In the past week, policymakers had to intervene to save at least four different financial institutions.