Why Shares of First Republic Are Surging Today
Shares of First Republic (NYSE: FRC) surged as much as 32% this morning before giving back some of those gains. First Republic traded close to 16% higher as of 11:37 a.m. ET today.
The jump comes after First Citizens BancShares (NASDAQ: FCNCA) announced this morning that it would acquire all of SVB Financial's former loans and deposits. It also comes as regulators are contemplating more liquidity assistance for banks.
First Republic has been one of the banks that investors have been watching very carefully since the collapse of SVB Financial and Signature Bank. That's because First Republic is sitting on a substantial amount of unrealized bond losses and also has a lot of uninsured deposits that are more of a flight risk. The Wall Street Journal reported that First Republic saw deposit outflows of around $70 billion. Shares of the bank are down more than 88% over the last month.
Source Fool.com
