First Republic Bank's Stock Takes a Hit Amidst Downgrades and Yellen's Comments.
Fitch Ratings has downgraded First Republic Bank's debt rating three notches to "B" from "BB" due to the bank's costly funding profile after a group of banks injected $30bn of liquidity into the bank. Fitch estimates that the bank is currently operating at a net loss that is not sustainable over the longer term absent a balance sheet restructuring. The bank will have to raise liquidity by selling assets if it is required to repay the $30bn at the end of its term.