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Bad Bank

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finance2 years ago•5 min saved

First Republic Bank considers asset sales and 'bad bank' options amidst deposit outflows and market concerns.

First Republic Bank is exploring options such as asset sales and the creation of a 'bad bank' to turn around its business after reporting a more than $100 billion plunge in deposits in the aftermath of the biggest turmoil to hit the banking sector since 2008. The bank's mortgage loan book and securities portfolio could lead to big writedowns if someone were to acquire them, according to Christopher Wolfe, head of North American banks at Fitch Ratings. The bank has declined to comment on the specific options.

via Reuters|

#asset-sales #bad-bank #banking-crisis

finance2 years ago•2 min saved

First Republic Bank's Deposit Outflows Lead to 50% Share Drop.

First Republic Bank's shares fell 50% after reporting a dramatic slump in deposits, leading to fears that it could be the third bank to fail after the collapse of Silicon Valley Bank and Signature Bank. The bank now faces tough options to turn around its business with the creation of a "bad bank" or asset sales possibilities. The bank has been reeling as it navigates the twin challenges of assuring customers their deposits remain safe and investors that it has liquidity to emerge from the crisis.

via The Guardian|

#asset-sales #bad-bank #banking-sector