First Republic Bank Stock Plummets 60% in Pre-Market Trading

First Republic Bank shares slumped 60% in premarket trading on Monday morning following the weekend collapse of Signature Bank and Friday’s closure of SVB Financial. Federal regulators have stepped in to try and calm investor fears, but this has done little to stop the stock from dropping.

The banking sector is facing a tough time as more banks are forced into insolvency due to economic pressures caused by the coronavirus pandemic. This has led investors to be wary of investing their money in banks that may be vulnerable or at risk of failure.

Analysts have suggested that First Republic Bank could face similar issues if it does not take steps soon enough, such as reducing its exposure to risky assets or increasing its capital buffer levels. The bank must also ensure it can meet customer demands for deposits and loans during this difficult period, while also managing liquidity risks effectively without taking too much risk with its balance sheet management practices.

For First Republic Bank’s share price to rebound, investors need assurance that these measures will be taken swiftly and successfully implemented so they feel confident about investing again; otherwise further losses are likely over the coming weeks if no action is taken soon enough.