Any rescue plan of First Republic Bank that includes sales of its government backed housing bonds is unlikely to stress the market, says Goldman Sachs.
Any rescue plan of First Republic Bank that includes sales of its government backed residential mortgage bonds would likely result in “contained damage,” according to Goldman Sachs.
First Republic FRC has returned to the spotlight in recent days as reports of a potential rescue effort of the bank emerged, including a Bloomberg report of a potential sale of $50 billion to $100 billion of its assets from its balance sheet. “At first glance, this would appear to be an unfriendly development” for the roughly $8.8 trillion agency residential mortgage-bond market, given recent sales of assets seized by the Federal Deposit Insurance Corp. from Silicon Valley Bank and Signature Bank, wrote Goldman team of analysts led by Lotfi Karoui, in a weekly client note.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
First Republic Bank shares plumb new lows on report government reluctant to interveneFirst Republic Bank's market value plunged below $1 billion for the first time ever on Wednesday after a report said the U.S. government was unwilling to intervene in the rescue process, hammering the lender's stock.
Read more »
First Republic Bank rout; unable to shake depositor anxietyFirst Republic Bank's stock slid Wednesday in an ongoing rout that has erased more than 50% of its value just this week on concerns about the bank’s financial health in the wake of two other bank collapses. Shares slumped nearly 20% following an even more severe tumble the previous day after it revealed depositors withdrew more than $100 billion last month after the collapse of Silicon Valley Bank and Signature Bank. Trading in the bank’s shares was halted several times Wednesday for volatility. The bank said late Monday that it was only able to stop the bleeding after a group of large banks stepped in to save it by depositing $30 billion in uninsured deposits.
Read more »
First Republic Banks faces potential curb in Fed’s borrowing; Dow Jones extends losses“US bank regulators are weighing the prospect of downgrading their private assessments of First Republic Bank — a move that may curb the troubled firm
Read more »
Dow, S&P 500 close lower Wednesday as First Republic woes eclipse Big Tech earnings: Live updatesThe Dow lost more than 200 points as investors’ worries around First Republic overpowered their excitement around Big Tech earnings. The Dow fell 0.68%. The S&P 500 shed 0.39%. The Nasdaq popped 0.47%.
Read more »
First Republic faces potential curb on borrowing from Fed, Bloomberg reportsU.S. bank regulators are weighing the prospect of downgrading their private assessments of First Republic Bank , which could lead it to face potential curbs on borrowing from the Federal Reserve, Bloomberg News reported on Wednesday.
Read more »
First Republic shares sink to new low in survival fightShares of First Republic Bank tumbled to a new low on Wednesday following after sliding Monday on the news the bank's deposits fell 40% during the crisis that hit regional lenders.
Read more »