First Republic Bank's Deposit Flight Sends Shares Plunging.

TL;DR Summary
First Republic Bank faces a tough challenge to recover its business after losing over half of its deposits, with shares dropping 20% in premarket trading. The bank reported a more than $100 billion plunge in deposits in the first quarter, following the biggest crisis to hit the banking sector since 2008. Analysts expect challenges to extend through the year after two US bank failures last month created a liquidity crunch at a slew of regional lenders. The bank plans to shrink its balance sheet and cut expenses by cutting executive compensation, paring back office space, and laying off 20%-25% of employees in the second quarter.
Topics:business#banking-sector#deposit-flight#finance#first-republic-bank#liquidity-crunch#regional-lenders
- First Republic shares plunge as $100 billion deposit flight jolts investors Reuters.com
- First Republic lost $72 billion in deposits amid bank turmoil Yahoo Finance
- First Republic Bank shares whipsaw on earnings, layoffs and plunging deposits CNBC Television
- Morning Bid: Bank angst echo Reuters.com
- First Republic says deposits tumbled 40% to $104.5 billion in 1Q, but have stabilized since CNBC
Reading Insights
Total Reads
0
Unique Readers
0
Time Saved
2 min
vs 3 min read
Condensed
78%
484 → 105 words
Want the full story? Read the original article
Read on Reuters.com