Granted, First Republic Bank is getting a financial injection. Consequently, FRC stock dropped from more than $120 to less than $25 on fears of bank runs and financial-failure contagion. This made it more difficult for First Republic Bank and some other financial institutions to honor their depositors’ withdrawal requests. As the prices of those bonds cratered, the net worth of some banks, including First Republic Bank, declined sharply. Like Silicon Valley Bank, First Republic Bank encountered problems after the Federal Reserve repeatedly raised interest rates on bonds.
Big Banks Give First Republic Bank a Capital Infusion
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