HomeLatest News & UpdatesFirst Republic Bank's financial woes deepen despite the cash infusion IV News
- Advertisment -

First Republic Bank’s financial woes deepen despite the cash infusion IV News

- Advertisment -
- Advertisment -
- Advertisement -

irshi Videos News latest,

- Advertisement -

New York, Mar 18 () America’s First Republic Bank’s financial woes appeared to be deepening despite an industry-led emergency infusion, media reports said.

The beleaguered bank is trying to raise funds through a private placement of new shares, the New York Times reported, citing people familiar with the situation.

- Advertisement -

The news comes just 24 hours after First Republic secured a $30 billion cash infusion from a banking conglomerate, CNN reported.

A full sale of the bank is still on the table, according to one of the people who spoke to the New York Times.

- Advertisement -

Stocks fell on Friday, ending the day lower as banking turmoil continued to roil Wall Street, CNN reported.

The Dow ended the week down 1.2 percent. The S&P 500 ended the week up 1.4 percent. The Nasdaq index rose by 4.4 percent.

Shares of First Republic continued their slide, down 33 percent, even after a group of big banks stepped in to offer the troubled bank $30 billion in deposits, CNN reported.

Shares of Credit Suisse fell 8 percent as Wall Street remained concerned about the bank’s ability to recover from this week’s turmoil.

Investors are hoping that next week’s Federal Reserve meeting will shed more light on the trajectory of the economy after a difficult week. Traders see a roughly 63 percent chance of a quarter-point hike, according to the CME FedWatch Tool.

Swiss banking giant UBS is in talks to take over all or part of Credit Suisse, after a day in which the troubled banker continued to see its share price fall despite a $54 billion cash injection, The Guardian reported.

The Financial Times reported that the boards of the two banks plan to meet separately this weekend in talks initiated by the Swiss central bank, which provided a lifeline to Credit Suisse, and regulator Swiss Finma.

The expected talks come as a senior Credit Suisse executive said wealth management clients were leaving the bank. The merger of UBS, valued at $56 billion, and Credit Suisse, valued at $7 billion, was “plan A” to arrest the collapse in confidence, the FT said, citing unnamed sources.

UBS was also reported to be analyzing potential risks to its own business in taking over its Swiss counterpart, according to The Guardian.

Credit Suisse has said it is a strong, global bank. “We meet and exceed essentially all regulatory requirements. Our capital, liquidity base is very strong,” Chief Executive Ulrich Koerner said earlier this week.

Credit Suisse is the largest bank to date to be caught up in the escalating banking crisis. On Friday, the parent company of a Silicon Valley bank filed for bankruptcy after worried savers withdrew billions from their accounts. And on Thursday, Wall Street’s biggest banks launched a bailout package for San Francisco-based First Republic, which had been hit by a similar wave of foreclosures.

That deal initially calmed jittery US investors, but on Friday bank shares fell again as fears grew that the crisis was intensifying, The Guardian reported.


(This story has not been edited by Kashmir Monitor staff and is automatically generated from a syndicated feed)

- Advertisement -
- Advertisment -

Most Popular