(New York) The American bank First Republic is again under pressure on Wall Street on Monday, affected by a further downgrading of its rating by the agency S
First Republic’s stock, which has already lost 80% of its value since March 8, plunged another 19% around 9 a.m. (Eastern time) in electronic trading before the official opening of the session.
This trend contrasted with that of other US banks in a market that seemed at least partially reassured by the emergency measures taken to allay fears about the banking system, starting with the takeover of Credit Suisse.
The large establishments JPMorgan, Bank of America and Citigroup took 0.8%, 1.1% and 1.2% respectively. Medium-sized banks, badly shaken last week, also seemed to be off to a good start, like PacWest (18.7%), Zion (4.9%) or Western Alliance Bancorporation (11.4%).
The fact that eleven major US banks pledged to deposit $30 billion in First Republic accounts on Thursday “should ease the need for short-term liquidity,” S said.
The rating agency also warned that it could soon lower First Republic’s rating further “if the bank is unable to demonstrate progress in stabilizing deposits and recovering the value of the franchise which, in (his) opinion, has probably eroded”.
Another less reassuring element for investors: The New York Times said on Friday, citing sources familiar with the matter, that the bank was trying to raise new capital from other banks or private equity firms by issuing new shares. . First Republic also mentioned Friday, according to the daily, the possibility of selling.