First Republic Bank Shares Crash To New Record Low, JPM's Dimon Reportedly Leading Another Rescue Effort
Having dumped $30 billion of deposits into First Republic Bank last week, and the bank then being rumored to be pushing for a capital raise, The Wall Street Journal reports that JPMorgan CEO Jamie Dimon is leading discussions with the chief executives of other big banks about fresh efforts to stabilize the troubled regional.
Among the options on the table, the people said, is an investment in First Republic by the banks themselves.
The plan could involve the banks converting some or all of the $30 billion in deposits into a capital infusion, some of the people said.
FRC shares are down over 45% this morning at a new record low...
As a reminder, the San Francisco-based bank’s customers have withdrawn some $70 billion since the collapse of Silicon Valley Bank earlier this month, The Wall Street Journal previously reported.
The twist is that JPM - which has hundreds of billions in excess cash and can be very "generous" - will soon be the largest creditor of small banks, positioning it in perfect spot for the coming debt for equity swaps. https://t.co/FNIz57jp2Y— zerohedge (@zerohedge) March 16, 2023
FRC shares are halted currently...