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The American bank First Republic plunges -15.7% at the opening on Wall Street


The regional bank is affected by a further downgrading of its rating by the S&P agency, which considers the recent aid of 30 billion dollars “perhaps” not sufficient.

The American bank First Republic, affected by a further downgrading of its rating by the S&P agency which considers the recent aid of 30 billion dollars "


" not sufficient, was still plunging on Wall Street on Monday despite the upward trend for other bank stocks.

The action of First Republic, which has already lost 80% of its value in eight sessions, fell further by 15.7% in the first exchanges of the official session.

This trend contrasted with that of other US banks in a market that seemed at least partially reassured by the emergency measures taken to allay fears about the banking system, starting with the takeover of Credit Suisse.

The large establishments JPMorgan, Bank of America and Citigroup took 0.8%, 1.1% and 1.2% respectively.

Medium-sized banks, badly shaken last week, also seemed to be off to a good start, like PacWest (+18.7%), Zion (+4.9%) or Western Alliance Bancorporation (+11.4 %).

Read alsoBankruptcy of SVB: the American authorities believe that the banking crisis can be contained

A further drop in its rating not excluded

S&P Global Ratings, which had already relegated First Republic to the category of speculative investments last Wednesday, lowered its rating by three additional notches on Sunday.

The fact that eleven major US banks pledged to deposit $30 billion in First Republic accounts on Thursday "

should alleviate the need for short-term liquidity

," S&P said in a note.

But this may not solve the strategic, liquidity, funding and profitability problems that the bank now faces

,” he added.

The rating agency also warned that it could downgrade First Republic's rating further soon "

if the bank is unable to demonstrate progress in stabilizing deposits and recovering the value of the franchise which, in (his) opinion, has probably eroded


Another less reassuring element for investors: the

New York Times

said on Friday, citing sources familiar with the matter, that the bank was trying to raise new capital from other banks or private equity firms by issuing new shares. .

First Republic also mentioned Friday, according to the daily, the possibility of selling.

Source: lefigaro

All business articles on 2023-03-20

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