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   From: democrat.failures@nytimes.com   
      
   On 06 Sep 2021, Bad Biden  posted some   
   news:sh6ac3$e6d$15@news.dns-netz.com:   
      
   > Siri Cruise wrote   
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   >> Democrats are criminals.   
      
   First Republic Bank’s fate is looking grim.   
      
   The bank’s stock has plummeted about 75% this week, after a disappointing   
   first-quarter earnings report Monday revived Wall Street’s fears about a   
   banking crisis and catalyzed an exodus out of First Republic stock. While   
   a small rally on Thursday suggested that investors were hopeful that a   
   white knight could swoop in to save the embattled lender, things   
   eventually took a turn for the worse.   
      
   An administration source familiar told CNN Friday the White House has no   
   new plans to rescue the embattled lender, snuffing out hopes of government   
   intervention. Reports swirled that the bank will likely go into   
   receivership by the Federal Deposit Insurance Corporation, shattering   
   optimism that private sector help could be on the way. Shares of the bank   
   plunged roughly 37%.   
      
   It remains unclear whether the bank will collapse. While there’s a chance   
   it could happen Friday — when financial institutions have historically   
   failed — it could happen another day. Or, the bank could survive.   
      
   But that will be difficult to achieve without a lifeline. First Republic   
   already received about $100 billion in life support from big banks last   
   month, when the collapses of Silicon Valley Bank and Signature Bank sent   
   investors and depositors fleeing from regional banks and put the health of   
   the financial sector in question.   
      
   Shares of First Republic are down roughly 97% this year.   
      
   Signs of trouble   
   Trouble for First Republic started brewing this week after the company   
   reported that its total deposits fell 41% in the first quarter to $104.5   
   billion. Analysts had expected deposits of around $136.7 billion.   
      
   CEO Michael Roffler tried to assure spooked shareholders on the company’s   
   13-minute, no-questions-taken conference call that deposit activity had   
   stabilized since the end of March.   
      
   About two-thirds of First Republic’s deposits were uninsured with the FDIC   
   when the banking turmoil took hold in March, lower than the 94% at Silicon   
   Valley Bank. But at the end of 2022, First Republic had a whopping ratio   
   of 111% for loans and long-term investments to deposits, according to S&P   
   Global. In other words, the bank has loaned and invested more money than   
   it has in deposits, subjecting it to liquidity risk.   
      
   Roffler said on the bank’s earnings call that the bank had twice the   
   available liquidity of uninsured deposits as of April 4, excluding the $30   
   billion received from large banks.   
      
   But investors remained jittery, and a brutal sell-off began. Shares of   
   First Republic’s stock plunged 50% on Tuesday and spiraled in the days   
   following.   
      
   Behind the scenes, First Republic scrambled to save itself once again.   
   Advisers lined up potential buyers of its stock and vied for big US banks   
   to purchase bonds from the bank, according to CNBC.   
      
   The stock rose roughly 9% on Thursday, as investors breathed a sigh of   
   relief after other banks reported their earnings with no additional bad   
   news, before nosediving once again.   
      
   Déjà vu   
   First Republic’s fight for survival comes just over a month after Silicon   
   Valley Bank’s collapse on March 10. The government shut down New York-   
   based Signature Bank the Sunday after and moved to guarantee all deposits   
   at both lenders. The Federal Reserve established additional funding for   
   eligible financial institutions to prevent future runs on similar banks.   
      
   While Wall Street seemed to mostly shrug off the banking turmoil, with   
   stocks gaining in the first quarter and staying relatively resilient   
   through a bumpy earnings season, many investors remained unconvinced that   
   banks were out of the woods.   
      
   That’s partly because the Fed’s rate-hiking campaign — which has fueled   
   stresses in the banking sector — is ongoing. Wall Street expects the   
   central bank to raise rates by a quarter point at its May meeting, and   
   pause and even cut rates later this year. But inflation remains sticky,   
   recession fears are mounting and it remains uncertain whether the Fed will   
   indeed ease up on its fight to stabilize prices.   
      
   Lawmakers and investors alike sought answers for how the banks collapsed.   
      
      
   [continued in next message]   
      
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