First Republic Bank experienced a trading halt on Wednesday as the stock market opened, with volatility cited as the reason for the suspension. The bank’s stock($FRC) prices reached 52-week lows, prompting concerns.
However, this marks the second consecutive day that First Republic Bank’s trading was halted, as the stock price has plummeted by 94% this year.
First Republic Bank explores salvational measures
As the crisis unfolds, First Republic Bank is investigating possible salvational measures to address its situation. The bank’s stock price dropped by more than 23% following a 49% decline yesterday. In contrast, several other regional banks saw their stocks rise, highlighting the challenges faced by First Republic Bank.
For example, PacWest’s stock increased by 15% despite losing billions in the first quarter. Meanwhile, First Republic Bank is reportedly exploring options to shield itself from potential government seizure. This possibility was reported yesterday.
Multiple reports suggest that First Republic Bank may divest $50 billion to $100 billion of various assets to address the current predicament. The bank itself has stated that it is seeking “strategic options” to mitigate the crisis.
Last month, during a budding banking crisis, the bank lost access to $100 billion in deposits.