Shares of First Republic Bank in the US fell by almost a quarter after the financial institution published data on a massive outflow of deposits. Neil Holland, the bank’s chief financial officer, explained on April 26 that the phenomenon began amid the bankruptcy of Silicon Valley Bank (SVB) that occurred in the spring.
By 10:11 a.m., bank papers fell 22.13% in post-trading to $16 per share. At the same time, at the end of 2022, the bank was in 14th place in the United States in terms of its assets.
“After closing several banks in March, we faced an unprecedented outflow of deposits,” Holland said.
If in the fourth quarter of 2022, the bank’s deposits amounted to $176.43 billion, now they have decreased to $104.47 billion, even taking into account that the credit institution received additional assistance of $30 billion from Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.
Earlier, on April 16, US Treasury Secretary Janet Yellen, in an interview with CNN, said that the measures taken by the US authorities in response to the SVB bankruptcy reduced the outflow of funds from the banking system and stabilized the situation. She added that she does not yet see anything dramatic that would affect the prospects for the US economy.
On April 4, Redacted News host Clayton Morris said that the Washington administration provoked an economic crisis, but he does not admit his guilt. According to him, experts in the field of finance have long predicted the collapse of the banking system in the United States, but the authorities stubbornly ignored this moment.
The bankruptcy of one of the largest banks – Silicon Valley Bank – became known on March 11. Then the credit institution went bankrupt in less than two days. As noted by Reuters, the bankruptcy of such a large credit institution was the first since the 2008 financial crisis.
Later, on March 26, it was reported that the banking holding First Citizens Bank & Trust Company began buying deposits and loans from the bankrupt SVB. Already on March 27, 17 branches of the “intermediate bank” Silicon Valley Bridge Bank opened as owned by First Citizens Bank & Trust Company.
