JPMorgan advising First Republic on another fundraise
New York, March 21 (IANS) JPMorgan (NYSE: JPM ) Chases investment bank has been hired to advise First Republic, as the embattled regional bank tries to ease concerns about its financial condition, a media report said.
First Republic's share price has plummeted 90 per cent to record lows over the past month, as investors scrutinised lenders with a high amount of uninsured depositors — a response to the collapse of Silicon Valley Bank and Signature Bank earlier this month, CNN reported.
First Republic's nosedive continued even after 11 of America's biggest banks, including JPMorgan, Citigroup (NYSE: C ) and Wells Fargo (NYSE: WFC ), provided First Republic with a $30 billion rescue last week. Despite that effort, both Moody's and S&P Global (NYSE: SPGI ) Ratings downgraded First Republic's credit ratings over the weekend.
Now, the San Francisco-based First Republic has hired JPMorgan's investment bank to help management explore its options, including potentially raising additional capital, CNN reported.
First Republic shares rallied 22 per cent in premarket trading on Tuesday, rebounding from a 47 per cent plunge on Monday.
Jim Herbert, First Republic's founder and executive chairman, and CEO Mike Roffler had last week expressed their "deep appreciation" to the big banks for their $30 billion lifeline, CNN reported.
"Their collective support strengthens our liquidity position, and reflects the ongoing quality of our business, and is a vote of confidence for First Republic and the entire US banking system," the First Republic executives said in a statement issued last week.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or