First Republic shares ended the week down almost 72%, marking a turnaround from Thursday’s relief bounce.
Bank shares in the US market fell this Friday, as investor concern about the health of the country’s financial sector grows.
The index Dow Jones has fallen 384 points this day, which represents a decrease of 1.2%, while other stock indices also led falls in the North American market, according to MarketWatch data.
So, the S&P 500 contracted and 1.1%, standing at 3,917 points at the close of the session, at 16:10 GMT this day. The Nasdaq Composite also experienced a drop of 0.7%, losing 87 points.
First Republic shares They collapsed 32.8% and ended the week down almost 72%, marking a turnaround from Thursday’s relief rebound, when eleven of the largest US banks announced they would inject a total of 30,000 million dollars to rescue the entity, showing its confidence in the country’s banking system.
“Deposits have fled from regional banks like First Republic to the big banks, which now bail them out by returning their deposits. But this does not solve the problem“, said Thomas Hayes, president of the private equity firm Great Hill.
“Until the flight of deposits from regional banks to systemically important banks that are too big to fail is stopped, it doesn’t matter how much money is thrown into the bucket,” he said.
Investors have closely watched bank stocks in recent days fearing others could suffer the same fate as Silicon Valley Bank and Signature Bank, both of which closed in the past week. The market has reacted to the latest developments in the sector after regulators said at the weekend that they would support deposits at the two banks.
