The Ongoing Fallout from Credit Suisse's Collapse.
First Republic Bank's stock has lost 90% of its value in less than two weeks due to its overlap with Silicon Valley Bank, which officially failed on March 10. Both banks cater to high-end clients and have exposure to long-dated securities, which have been falling in value as interest rates rise. First Republic's emphasis on these securities has been a liability in the current environment, and many of them are in the mortgage business, which has been ailing. Efforts to inject $30 billion into the company's deposits and a backstop from the U.S. Federal Reserve have not helped, and the bank's total deposits have dropped by up to $89 billion. The challenges facing First Republic, as well as the demise of Silicon Valley Bank and Signature Bank, will be the focus of hearings on Capitol Hill next week.