First Republic Bank Frankfurt-listed shares rise after rescue
2023.03.17 04:31
© Reuters. A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike Segar
LONDON (Reuters) – The Frankfurt-listed shares of First Republic Bank (NYSE:) rose as much as 5% in in early trading on Friday after large U.S. banks injected $30 billion in deposits into the beleaguered lender on Thursday.
Fears of an imminent collapse of the San Francisco-based bank prompted a deal put together by top power brokers including U.S. Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and JPMorgan Chase (NYSE:) CEO Jamie Dimon.
However, while First Republic’s stock closed up 10% on news of the rescue, its shares fell 17% in after-market trading after the bank said it would suspend its dividend and disclosed its cash position and just how much emergency liquidity it needed.
Frankfurt-listed shares in other U.S. banks including Zions Bancorp and Fifth Third were indicated up around 3%.
First Republic was caught up in a widening banking crisis triggered by the collapse of two other mid-size U.S. lenders over the past week.
The rescue package came less than a day after Swiss bank Credit Suisse clinched an emergency central bank loan of up to $54 billion to shore up its liquidity.
