The US banking crisis is intensifying with the First Republic Bank in free fall

The US banking crisis is intensifying with the First Republic Bank in free fall

The Shares of First Republic Bank (FRC) lost half of their value on Tuesday, April 25, after a disappointing quarterly report.

The competitive bank was the worst performer in the S&P 500 on this day when investors sold their shares. Since the beginning of the year, the share of the first republic has fallen by 93 %.

The bank has become the youngest victim of a stricter crisis that includes the collapse or attachment of a series of medium -sized lenders this year. So far, the Silicon Valley Bank, Silvergate and Signature Bank have been closed in 2023.

first Republic was the focus of the market fear after an increase in the deposits, the WSJ.

first republic $ fRC 😵‍💫

today for * 40% and now -93% since the beginning of the year. pic.twitter.com/sxjpjpjtz7m2

-trade view (@handels view) 25. April 2023

bank bunkum

On April 24, the bank explained that it checked strategic options after it became known that it had lost deposits of around $ 100 billion. However, analysts and investors already seem to have lost confidence in them.

Finance Minister Janet Yellen and the chairman of the US Federal Reserve, Jerome Powell, asked investors not to panic, and said they would support the banking system.

In the first quarter, First Republic recorded $ 92 billion, mainly from the Federal Reserve and state -supported credit institutions. It effectively replaced lost deposits by loans.

First Republic also received a temporary leash of $ 30 billion from large banks such as JP Morgan Chase in March.

In addition, bank managers did little this week during a conference call to build trust. Financial professor at New York University, Aswath Damodaran, commented: "This is a problem of trust, as is the case with every bank, and if trust is lost, money will flee."

The infection seems to have spread to other American banks, as concerns about another bank -induced financial crisis are loud. Pacwest Bancorp's shares have fallen by about 60 % since the beginning of March, and Northern Trust has experienced price losses.

Bitcoin from Banking News Inspired

bad news in the banking sector are good news for Bitcoin that emerged from the last banking crisis in 2008.

BTC has increased around 4 % in the last 12 hours and is currently being traded at $ 28,368.

The movement could only be short -lived, since Bitcoin has dropped by 6.5 % last week because the cryptoma markets correct. The price zone of $ 28,000 is now overturned from support to resistance.

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