First Republic Bank Fallen Over 60% In 1 Day, Flight Or Fight?
The U.S. banking system is currently facing some tough times when it comes to having enough money to cover all deposits. The good news is that the Fed has promised to step in and make sure all depositors are protected.
However, things are still pretty uncertain, and it looks like people will be more likely to put their money in the big banks in the future. If enough people take their money out of a bank, it could really hurt that bank's ability to keep going.
Overall, this is a tough situation for all banks, but it's especially hard for smaller, regional banks like First Republic Bank $第一共和银行(FRC.US$. They focus on serving wealthy clients in big cities like San Francisco, New York, and Los Angeles. Even though their stock price has dropped by over 60% in 1 day, it will be taking a huge risk to buy their shares right now, since they are more vulnerable than the big banks like Bank of America or JP Morgan $JPMorgan(JPM.US$.
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Shroomie : you do know JPM is backing FRC right? they have 70b in unused liquidity... what huge risk? Stop spreading fear
Shaul Heymans Shroomie: yup...I also think FRC will stay strong.
長期投資家 : Bank of America is the strongest so far