Despite management’s efforts to reassure investors that it was not facing a liquidity problem, its stock began to sink immediately after Wall Street opened
The first worrying signs after the collapse of Silicon Valley Bank and Signature Bank are already beginning to be seen despite Joe Biden’s assurances that the US banking system is safe.
THE First Republic Bank sees her stock today, Monday to fall by 67% at the start of the session on Wall Street, despite efforts by its management to reassure investors that it is not facing a liquidity problem, saying in a statement on Sunday that it has more than $70 billion of unused cash to fund its operations.
“Additional borrowing capacity from the Federal Reserve, continued access to funding through the Federal Home Loan Bank shelter, and the ability to draw additional resources from JPMorgan Chase further increases, diversifies and strengthens First Republic’s liquidity profile”the bank noted.
However, investors seem not to have been convinced by the assurances of a result to switch to safer investments resorting largely to US and German government debt.
Earlier, Joe Biden in his statements analyzed the actions taken by the US government in order to protect the depositors of Silicon Valley Bank and Signature Bank.
Source: Skai
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