Arab Press

بالشعب و للشعب
Monday, Mar 16, 2026

First Republic Bank's shares plunge as it reveals more than $100bn of withdrawals

First Republic Bank's shares plunge as it reveals more than $100bn of withdrawals

Financial market analysts question again whether the US lender might by the third bank to collapse this year as it reveals the extent of the damage inflicted by the crisis of confidence last month.
Shares in First Republic Bank have tumbled to a new record low after the troubled US regional lender admitted last month's banking crisis sparked a customer deposit flight of more than $100bn.

The bank, which was saved from possible collapse by a $30bn cash injection agreed by major lenders, saw its stock drop by up to 29% at the market open on Tuesday.

They closed almost 50% lower, leaving its market value 93% lower in the year to date below $3bn.

It followed the release of its first quarter earnings report that revealed the extent of the challenge it faced to recover the business.

First Republic said the withdrawals, which amounted to more than half its pre-crisis deposit total, had cooled since the rescue cash was announced.

But financial market analysts said the amount had revived fears that First Republic could become the third US bank to fail after the collapse of Silicon Valley Bank and Signature Bank.

The crisis of confidence also saw Switzerland's Credit Suisse, which endured a £55bn deposit outflow, forced to merge with rival UBS.

The saga was largely born out of concerns that rising interest rates imposed by central banks to tackle inflation had damaged their balance sheets.

San Francisco-based First Republic said it would move to shrink its balance sheet.

Bloomberg News reported that the bank was exploring asset sales of up to $100bn.

Executive pay cuts, First Republic said, would be followed by thousands of job losses to be completed by the end of June.

The bank said it expected to axe between 20%-25% of its workforce, which was reported at 7,200 at the end of last year.

Its results statement did little to support shares of other US regional lenders, with some seeing shares down by more than 5%.

The jitters forced all the major Wall Street indices lower, with the S&P 500 down more than 1.5% as wider recession fears resurfaced.

Analysts said the mid-tier banking sector, but especially First Republic, had to assure customers that their deposits remained safe and investors that they had the liquidity to operate effectively.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "It seems the lifeline thrown to First Republic by large lenders hasn't stopped confidence sinking.

"With almost a quarter of the workforce being axed and a quick-fire asset sale getting underway, investors are sensing panic and fleeing the stock and worries are rising about another banking collapse."
Comments

Oh Ya 3 year ago
But but but slow joe and the ho have everything is GREAT . Are you prepared for a financial setback like the great depression if 28-32 .

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
Iranian Missile and Drone Strike Targets Saudi Arabia’s Prince Sultan Air Base Hosting US Aircraft
Saudi Air Defenses Intercept Drone Over Eastern Province as Iranian Strike Campaign Intensifies
Middle East War Reshapes Gulf Economies as Saudi Arabia and Oman Gain Strategic Leverage While UAE Faces Economic Shock
Iranian Ambassador in Riyadh Blames ‘Enemies’ for Attacks Across the Gulf
Israeli Envoy Ron Dermer Reportedly Visits Saudi Arabia for Discussions on Potential Lebanon Talks
Formula One Cancels Bahrain and Saudi Arabian Grands Prix Scheduled for April
Iran’s Ambassador in Riyadh Rejects Claims Tehran Targeted Saudi Oil Facilities
Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ in Major Push for Data-Driven Economy
Saudi Arabia’s 2018 Budget Signals Strong Push for Non-Oil Economic Growth
Pakistan Envoy in Riyadh Says Regional Diplomacy Intensifying to Prevent Wider Middle East War
Saudi Arabia Intercepts Dozens of Drones as Regional Strikes Kill Two in Oman
Saudi Arabia Redirects Oil Exports to Red Sea Ports as Strait of Hormuz Tensions Escalate
Saudi Arabia Intercepts Missile and Drone Barrage as Regional Conflict Intensifies
Iran Expands Drone and Missile Campaign Across Gulf as Conflict With US and Israel Intensifies
Muslims Worldwide Await Saudi Moon Sighting to Confirm Eid al-Fitr 2026 Date
F1 Calendar Faces Major Disruption as Middle East Conflict Threatens Bahrain and Saudi Races
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
Saudi Aramco Turns to Ukrainian Drone Interceptors to Shield Oil Infrastructure from Iranian Threats
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Rising Iran Conflict Casts Shadow Over Saudi Arabia’s $38 Billion Gaming Industry Ambitions
Iran Launches Missile and Drone Strikes Across Gulf as Oil Prices Surge Past $100
Saudi Air Defences Destroy Three Drones Targeting Strategic Shaybah Oil Field
Debate Grows Over Saudi Arabia’s Role in Sudan War Amid US Alliance Questions
Pakistan’s Prime Minister Travels to Saudi Arabia After Discussions With Iranian Leadership
Two Strategic Pipelines Allow Saudi Arabia and the UAE to Bypass the Strait of Hormuz
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
Iran warns of $200 oil as forces target merchant ships in Gulf
Japan to Release 45 Days of Oil Reserves Amid Iran Conflict
Three Commercial Vessels Attacked Near Strait of Hormuz, Thai-Flagged Ship Damaged and Crew Evacuated
×