First Republic CEO Michael Roffler attempted to assure investors in an earnings call Monday that the bank had enough liquidity to do that.
Investors who are buying First Republic stock are clinging to the hope "That a bailout package spearheaded by the largest US banks will leave something left for equity holders," wrote Bilson.
Other reports say that First Republic is considering asking big banks to help with such a deal.
Officials at the Federal Reserve are likely worried that First Republic's collateral is no longer sufficient enough to borrow against and will soon begin pressuring the bank to arrange an orderly wind down.
Officials at the central bank will also likely communicate to potential private capital providers that now is the time to consider making a deal with First Republic, Brusuelas said.
The Federal Reserve declined to comment and the FDIC did not immediately respond to request for comment from CNN. Stopping the spread First Republic sits at the center of the ongoing banking chaos, and investors are worried that its woes could indicate more trouble to come in the sector.
That's lower than the 94% at Silicon Valley Bank - but at the end of last year, First Republic had an exceptionally high ratio of 111% for loans and long-term investments to deposits, according to S&P Global - meaning it has loaned and invested more money than it has in deposits.
No comments:
Post a Comment