Cheddar News breaks down the Stock of the Week: First Republic Bank.

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Stock of the Week: First Republic Bank

Let's take a look at our stock of the week. It's been a shaky week for the economy, that's for sure. Just a lot of uncertainty and the failure of those three big banks prompting the biggest rescue package that we've seen since the financial crisis when it comes to the banking sector. So today we're gonna focus on First Republic Bank as the bank and wealth management provider did come close to collapsing in the contagion that followed the failure of Silicon Valley Bank. Well, like many other regional banks, first Republic faced with fears that its depositors will pull their funds happened at Silicon Valley Bank which catered to venture capital firms and startups that had a lot of money in their accounts. Those deposits largely uninsured because they surpassed the F D I C insured threshold. So when those accounts started bleeding money, SVB I just didn't have the cash to cover it. It was a run on the bank basically, but nearly two thirds of First Republic's deposits coming from uninsured accounts, sending a wave of fear throughout the markets as investors and analysts begin to doubt whether the bank could remain in business. Well, a group of big banks preventing that from happening, at least temporarily trying to step in to provide some aid. Thanks like Morgan Stanley jpmorgan chase Citigroup wells, Fargo Goldman Sachs coming together to kick in a collective 30 billion to try to keep this bank afloat a bank with a lot of branches. In fact, down here in lower Manhattan, well, first republic also had to take loans from the government borrowing a whopping $109 billion from the U S Federal Reserve, another 10 billion from the Federal Home Loan Bank a week ago. Now, the Feds saying that banks sought some $153 billion dollars in emergency liquidity just in the past few days. A record surpassing the total from the height of the financial crisis a decade and a half ago. Regardless of the rescue package, first Republic has been swept up in the banking crisis which has included the Swiss Bank credit suisse that got a $54 billion cash infusion emergency lending and analysts saying that we haven't seen the end of it. Um So that's why you see. Look in the past month, first Republic shares down 82%. A massive fall off literally in a short amount of time. We can take a look over that. Well, that is the past month, not even the emergency funds that were enough to quell this anxiety that you see. So let's take a look at the past five sessions to stock down about 19%. And today, again, those shares are still under pressure. Uh the stock is down 33% just today despite Janet Yellen, um saying that banks are sound. But then also saying later this week that not all uninsured deposits will be covered in future bank failures. So a lot to digest this week for sure.