Since the collapse of Silicon Valley Bank, various industry stakeholders have been doing everything they can to help cushion the pain on the company and help prevent it from collapsing.
Regional banks in the United States may have posted their worst month in March, the survivors including First Republic Bank (NYSE: FRC). As of this writing, First Republic shares are up 15.72% to $14.28 in a move that appears to be starting to pare the losses it has accumulated since then.
First Republic Bank has been under intense pressure since the collapse of Silicon Valley Bank (SVB) earlier this month. SVB has a similar business model to First Republic, which further intensifies the fears in the hearts of both investors and daily customers. The tension seen at SVB spilled over to Signature Bank with federal regulators shutting down both banks as withdrawals increased.
It can be said that the rebound in First Republic shares is fed by the report that regulators plan to extend support to the pending bank when it secures its own buyer in the short to medium term. The tension felt by these regional banks is also reported to be easing, causing the shares of most of FRC’s rivals to rise accordingly.
Shares of Los Angeles-based regional bank PacWest Bancorp (NASDAQ: PACW) are up 4.08% and are changing hands at $9.94 as of this writing. Phoenix, Arizona-based Western Alliance Bancorporation (NYSE: WAL) was not far behind either, as its price rose 4.70% to $34.70.
If these regional banks continue this impressive run, most may end March on a stronger-than-expected growth note.
Business rescue and shares of the First Republic: an effort of all
Since the collapse of Silicon Valley Bank, various industry stakeholders have been doing everything they can to help cushion the pain on the company and help prevent it from collapsing.
As reported by Coinspeaker, the regional bank recouped much of the losses it racked up when a group of top US financial institutions came together and deposited a total of $30 billion to help show they have confidence in the bank.
Banks that backed the struggling bank include Wells Fargo (NYSE: WFC), Citigroup Inc (NYSE: C), Bank of America (NYSE: BAC) and JPMorgan Chase & Co (NYSE: JPM), each pledging $5,000. millions. The duo of Goldman Sachs Group Inc (NYSE: GS) and Morgan Stanley (NYSE: MS) have agreed to deposit $2.5 billion.
In addition, a total of five other banks have also pledged to contribute $1 billion each to help First Republic. These categories include Bank of New York Mellon (NYSE: BK), State Street Corporation (NYSE: STT), US Bancorp (NYSE: USB), PNC (NYSE: PNC) and Truist (NYSE: TFC).
The latest bailout also involved reimbursing every depositor in the event of a liquidity crunch, as both federal regulators and private stakeholders are scrambling to bail out their rivals. This also shows the strength and coordination in the American banking industry.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
