Shares of First Republic Bank have fallen a further 33% and are down more than 80% over the past 10 days of trading. despite a $30 billion rescue package from major US banks.
Reports had been circulating that the troubled lender was in negotiations to sell fresh shares to rival banks or private equity companies to raise capital, and could also be open to negotiating a sale.
Fears over the health of the bank drove key power brokers, including US Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and JPMorgan CEO Jamie Dimon, to devise an unprecedented rescue plan on Thursday. On March 9, the lender disclosed that it has borrowed up to $109 billion from the US Federal Reserve and $10 billion from the Federal Home Loan Bank.
The shares of Wall Street banks engaged in the rescue of the San Francisco-based lender fell between 2 and 4 percent.
PacWest Bancorp, the holding company for Pacific Western Bank based in Los Angeles, dropped about 19% on Friday. The bank issued a statement after the closing bell indicating that it has more than $10,8 billion in available cash, exceeding its entire uninsured deposits.
According to its annual report, First Republic, which was founded in 1985, had $212 billion in assets and $176.4 billion in deposits at the end of last year.