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First Republic Among Bank Stocks Weighing Market
San Francisco's First Republic shares declined 33% last week. PacWest Bancorp dropped 37%, and Western Alliance Bancorp lost 29% in Monday's premarket. Zions Bancorporation shed 11%, while KeyCorp fell 10%. Bank of America (NYSE:BAC) lost 6% in premarket trading, while Charles Schwab (NYSE:SCHW) tumbled 20% early Monday.
First Republic issued a statement in the late Friday morning seeking to calm investors, pointing to its "continued safety and stability and strong capital and liquidity positions."
Addressing its liquidity, First Republic said: "Sources beyond a well-diversified deposit base include over $60 billion of available, unused borrowing capacity at the Federal Home Loan Bank and the Federal Reserve Bank." Regarding its financial position, First Republic said it "has consistently maintained a strong capital position with capital levels significantly higher than the regulatory requirements for being considered well-capitalized."
On Sunday, First Republic said it has enhanced and diversified its financial position through access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase (NYSE:JPM), bringing the San Francisco-based bank's total available, unused liquidity to fund operation to more than $70 Billion.
FRC shares collapsed $54.68, or 66.9%, to $27.08.