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First Republic Bank Crisis: The banking crisis that started with the sinking of Silicon Valley Bank of America is not taking its name to end. This banking crisis seems to be getting deeper with time. Another bank facing financial crisis is not taking the name of First Republic Bank’s difficulties. On Friday, a record decline was recorded in the bank’s shares. According to CNBC’s report, the Federal Deposit Insurance Corporation (FDIC), a company that provides insurance for the money of US bank customers, may put one of its receivers in the bank in view of the financial condition of the bank.
Big fall in bank shares
After this news came to the fore, the atmosphere of uncertainty among investors has increased and the bank’s shares reached their lowest level of $ 3.09. A total decline of 50 per cent has been registered in the shares of the bank. In such a situation, half of the market value of the bank has ended. Before the Fed Reserve meeting, the bank’s shares had registered a gain of 6.6 per cent on Thursday. The meeting was attended by US officials as well as several officials of the Federal Deposit Insurance Corporation and the Treasury Department. According to the report of CNBC, it has been decided in this meeting that FDIC can appoint one of its receivers in First Republic Bank.
Banks got help of $ 30 billion
According to the report published in Live Mint, the market value of First Republic Bank has decreased by $ 21 billion this year. In view of the bad financial condition of the bank, many American banks have already deposited $ 30 billion to save it. A group of banks together deposited a total of $ 30 billion uninsured amount in the bank to save the First Republic Bank. Even after this, there was no major change in the financial position of the bank.
The difficulties of the banking sector are not reducing
Significantly, with the sinking of Silicon Valley Bank, the banking crisis started in America and Europe. After this, its heat had reached Signature Bank and Credit Suisse Bank of Switzerland. Now the deteriorating financial condition of First Republic Bank has increased the restlessness in the banking world. According to the AP report, the bank First Republic Bank is considering the layoff of 7,200 employees to reduce the expenses.
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