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☆ What First Republic's results mean for the regional bank trade, according to Wall Street
▼ + stars: | 2023-04-25 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

First Republic 's quarterly update left investors with major questions about whether the bank can repair itself after massive withdrawals, but the regional bank troubles appear to now be limited to just a small corner of the industry, according to Wall Street analysts. The troubled regional lender reported its first-quarter results Monday, showing a 40.8% drop in deposits that was steeper than analyst estimates. The bank said deposits have stabilized in recent weeks and that it was taking steps to cut expenses and shrink its balance sheet, while also exploring strategic options. Results from regional banks over the last two weeks demonstrated the stickiness of the deposit customer base. ... We expect FRC to embrace a new approach and a different business model, as it adjusts to operating with a smaller balance sheet.

☆ First Republic handed out billions in ultra-low-rate mortgages to the wealthy. It backfired horribly.
▼ + stars: | 2023-04-25 | by ( Matt Turner | ) www.businessinsider.com time to read: +4 min

The bank won wealthy clients with the offer of jumbo mortgage loans that required no principal payments for a decade. First Republic first moved into focus back in the March banking crisis that claimed Silicon Valley Bank, Signature Bank, and Silvergate. Like SVB and Signature, a large percentage of First Republic deposits were not insured by the FDIC, making it especially susceptible to deposit flight. Wealthy clients can easily move their deposits away from First Republic while keeping their mortgage with the firm, which creates a liquidity challenge. First Republic is now backtracking from this strategy, saying it will focus on writing loans that are guaranteed by Fannie and Freddie.

[1/4] A view of the Park Avenue location of the First Republic Bank, in New York City, U.S., March 10, 2023. FDIC regulators had raised the specter of systemic risk from the failure of large regional banks months before the SVB and Signature Bank collapses, records reviewed by Reuters show. SECRETS REVEALEDThe Fed will release its report on SVB at 11 a.m. EDT (1500 GMT) on Friday. FDIC Chair Martin Gruenberg has not provided much detail about the supervision of Signature, which like SVB had grown rapidly in recent years. The Fed's inspector general will have a report on each bank in the third quarter.

☆ Sabalenka says win over Krejcikova a confidence boost for French Open
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

[1/2] Tennis - WTA 500 - Stuttgart Open - Porsche Arena, Stuttgart, Germany - April 19, 2023 Belarus' Aryna Sabalenka in action during her round of 16 match against Czech Republic's Barbora Krejcikova REUTERS/Angelika WarmuthApril 20 (Reuters) - World number two Aryna Sabalenka said beating former French Open champion Barbora Krejcikova in the second round of the tune-up event in Stuttgart will boost her preparation for the Roland Garros Grand Slam. Sabalenka defeated Krejcikova 6-2 6-3 in one hour and 15 minutes on Wednesday, becoming the first player to book her spot in the quarter-finals. The Belarusian said the victory over the 2021 French Open winner handed her a confidence boost ahead of the May 28-June 11 major on the Parisian clay. "It's tough but an interesting challenge to play the first match against a Grand Slam champion," Australian Open winner Sabalenka, who received a bye in the opening round, told reporters. "It is something unique like you're never going to play the first round against a Grand Slam champion in the bigger tournament.

☆ Morgan Stanley netted nearly $20 billion in new client assets from First Republic and other struggling regional banks
▼ + stars: | 2023-04-19 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +3 min

Morgan Stanley netted $109.6 billion in new client assets in the first quarter of 2023. Before the hiring binge, Morgan Stanley and other banks gave a $30 billion lifeline to First Republic. Morgan Stanley beat profit estimates with its first-quarter results and got a little boost from the banking crisis. Analyst Steven Chubak of Wolfe Research asked how First Republic advisors flocking to Morgan Stanley had boosted quarterly inflows. That leaves $19.6 billion attributable to advisors and clients fleeing struggling banks like First Republic for Morgan Stanley, a too-big-to-fail institution.

☆ Everything you need to know as JPMorgan, Citi, Goldman Sachs, and other big banks report earnings
▼ + stars: | 2023-04-14 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

Bank of America and Goldman Sachs come in on Tuesday, with Morgan Stanley bringing up the rear on Wednesday. For a breakdown on the specific numbers, check out Markets Insider and the fantastic 10 Things Before the Opening Bell newsletter. Big banks poured $30 billion into First Republic in the midst of the banking crisis in an effort to shore up the wider market. And what about those pesky shadow banks? Never one to miss a good opportunity, shadow lenders are looking to step up where big banks are stepping back, Bloomberg reported.

☆ Krejcikova to donate Billie Jean King Cup earnings to Turkey earthquake victims
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +1 min

[1/4] Tennis - Billie Jean King Cup Qualifiers - Ukraine v Czech Republic - Megasary Club Belek, Antalya, Turkey - April 14, 2023 Czech Republic's Barbora Krejcikova and Ukraine's Katarina Zavatska shake hands after their singles match REUTERS/Umit BektasApril 14 (Reuters) - Czech tennis player Barbora Krejcikova said on Friday she will donate her Billie Jean King Cup earnings to Turkey's earthquake victims. The earthquake that struck Turkey and Syria on Feb. 6 killed more than 55,000 people. Former French Open champion Krejcikova, who is currently playing in the Billie Jean King Cup qualifiers against Ukraine in the Turkish city of Antalya, said the funds would support tennis players in the affected regions. "The money will directly help the Turkish population from regions that have been affected by the earthquake, especially local tennis players that have lost close to everything," the 27-year-old said in a statement. loadingReporting by Tommy Lund in Gdansk; Editing by Ken FerrisOur Standards: The Thomson Reuters Trust Principles.

[1/2] Protesters hold placards depicting French President Emmanuel Macron during a demonstration as part of the 12th day of nationwide strikes and protests against French government's pension reform, in Paris, France, April 13, 2023. It would also need to find its way through parliament, where Macron has lost his working majority and debate has become increasingly fractious. The conservative Les Republicains' (LR) party, which the government had hoped it would be able to count on for support, has emerged deeply divided from the pension reform saga. "There are gaping wounds in the country," LR lawmaker Aurélien Pradié, who rebelled against the pro-pension reform party line on the reform, said on Twitter. So while the pension reform is on the statute books, Macron has much political capital still to regain.

☆ How First Republic drama may unfold, according to Wells Fargo
▼ + stars: | 2023-04-10 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

Struggling First Republic Bank still has a path to survival as a smaller version of itself, according to Wells Fargo. Wells Fargo analyst Jared Shaw said in a note to clients on Sunday that First Republic now has 50-50 odds of survival or seeing a regulator-driven resolution. The trick now is that First Republic needs to get smaller, Shaw explained, while holding on to those large new deposits. Even under a restructuring scenario, First Republic would still have negative earnings per share in the fourth quarter of 2024, according to Wells Fargo's calculations. Wells Fargo has a price target of $25 per share for First Republic, representing the 50-50 odds of the bank's survival.

☆ Jabeur targets Grand Slam success after Charleston crown
▼ + stars: | 2023-04-10 | by ( ) www.reuters.com time to read: +2 min

"I'm glad that I'm finding my rhythm and I hope my body will allow me to play," Jabeur told Tennis Channel, looking ahead to the European claycourt swing. I'm working on a lot of things and it's going my way, so for me: step by step, and I'm going for the Grand Slam this year." "If you want to do something, believe in it and only you can really manifest it," Jabeur added. "I was imagining myself in the photoshoot after, putting the image that I won that title already, and it happened. "I'll manifest the big trophy sets, the Wimbledon one and other Grand Slams that I want to win."

☆ Analysis: Heroes or villains: Short sellers' role in the U.S. bank crisis
▼ + stars: | 2023-04-09 | by ( Lawrence Delevingne | ) www.reuters.com time to read: +7 min

How much short sellers contributed to the downward spiral reprises the debate about whether so-called shorts are market watchdogs or opportunistic investors who profit from others’ misery. In the case of the banking crisis, a review of data and interviews with short sellers and their critics show, the answer may be both. Some high profile short sellers were later celebrated as making prophetic calls about the U.S. housing market. Even so, interviews and public postings show at least some short sellers had placed bets against regional banks well before the crisis hit. SHORT POSITIONSSuch early short sellers, however, were in the small minority.

☆ Jamie Dimon is riding to the rescue again. This time, he's poised to come out on top.
▼ + stars: | 2023-03-31 | by ( Carter Johnson | ) www.businessinsider.com time to read: +15 min

Why, then, has Dimon been so willing to swing back into action in the wake of Silicon Valley Bank's collapse? But it's starting to look like JPMorgan — and Dimon — will end up winners no matter how things turn out. In backstopping First Republic, JPMorgan helps a client and a bank that experts say would fit nicely into its business. By saving First Republic, JPMorgan also stands to gain goodwill from Silicon Valley startups, which are customers of the smaller bank. The paper also reported that regulators asked Dimon, Bank of America, and other banks to buy Silicon Valley Bank and pay out depositors over the insured limit.

☆ Exclusive: Massachusetts regulator probes First Republic insiders' stock sales
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +4 min

He is seeking details about the firm's insider trading policies and how officers handled their stock sales from January 1. A spokesperson for First Republic declined to confirm the firm received a subpoena or comment on the stock sales. Silicon Valley Bank and Signature Bank were seized by regulators days later amid liquidity crises, actions that sapped investor confidence in the sector. SHARE SALESSeveral First Republic executives have sold shares this year, including founder and Executive Chairman James Herbert. Herbert and Roffler did not respond to requests for comment on their stock sales or the subpoena.

☆ First Citizens takeover of SVB won't solve the bank run problem, Jim Cramer says
▼ + stars: | 2023-03-27 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

The Federal Reserve will continue to take interest rates higher as long as the mini-banking crisis drags on, CNBC's Jim Cramer said Monday. But if a larger bank fails, Cramer said the end to rate hikes would arrive faster, along with "a lot more pain." Citizens' stock soared 53% Monday, but Cramer said the deal does not necessarily act as a solution for the bank run problem. Cramer pointed to First Republic Bank , which rallied on the SVB news. "It's more shocking than endless rate hikes, but it gets the darned process over with, even with collateral damage that tends to be a lot worse," he said.

☆ Morning Bid: Brittle banks find a berth
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: +4 min

With few fresh weekend developments on the European bank stock rigor late last week, European bourses and bank stocks found a level too. Deutsche Bank, whose stock lurched lower on Friday amid fears about rising bank funding costs, regained about 3% on Monday. Deposits at small banks fell by $120 billion in the week to March 15, while borrowing jumped $253 billion. Economists polled by Reuters expect the headline year-on-year inflation rate to have cooled to 7.2% from 8.5% in February. * U.S. Treasury auctions 2-year notes* U.S. corporate earnings: CarnivalReuters GraphicsReuters Graphics Reuters GraphicsReuters GraphicsReuters GraphicsBy Mike Dolan, editing by Ed Osmond, <a href="mailto:mike.dolan@thomsonreuters.com" target="_blank">mike.dolan@thomsonreuters.com</a>.

☆ How First Republic's courtship of the wealthy led to meltdown
▼ + stars: | 2023-03-27 | by ( Lawrence Delevingne | ) www.reuters.com time to read: +6 min

March 27 (Reuters) - First Republic Bank (FRC.N) became the epicenter of the U.S. regional banking crisis after the wealthy clients it courted to fuel its breakneck growth started withdrawing deposits and left the bank reeling. Reuters GraphicsFor years, First Republic lured high net-worth customers with preferential rates on mortgages and loans. Morgan Stanley analysts estimated a deposit outflow of nearly half of total deposits according to a March 20 note. First Republic's loan book and investment portfolio also became less valuable as interest rates rose, which is hampering a capital raise. "Wealthy customers were drawn to First Republic in part because they could get large mortgages at rock-bottom interest rates," said McCoy.

Morgan Stanley analyst Manan Gosalia, in a report earlier this week, set a target price of $54 for First Republic shares in a best-case scenario. "I have not considered or discussed anything having to do with blanket insurance or guarantees of deposits," she said. The Morgan Stanley report considered that a potential extension of FDIC insurance could bring a majority of First Republic's customers back. Even if it clinches a cash infusion, the lender will probably need to take losses on securities in its so-called held-to-maturity portfolio, the Morgan Stanley analysts wrote. In the worst-case scenario, First Republic's shares would sink to just $1, Morgan Stanley analysts estimated.

☆ First Republic's marginal gains keep stock close to record-low levels
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +1 min

March 23 (Reuters) - Shares of First Republic Bank (FRC.N) rose 5% on Thursday as they drew the attention of bargain-hunting retail investors, but still hovered near record-low levels on lingering fears about the future of the U.S. regional lender. The stock was the second most traded by retail punters in Wednesday's session and the fifth most popular trade by 10:00 a.m. First Republic's shares have lost nearly 90% of their value this month, the worst performing stock among the members of S&P 1500 regional banks index (.SPCOMBNKS), which has fallen 30.2% during the same period. Treasury Secretary Janet Yellen on Wednesday dashed all hopes that U.S. regulators would insure all consumer deposits through the end of the banking crisis, sending First Republic's stock down 15% on the day. Reporting by Medha Singh in Bengaluru; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.

Morgan Stanley analyst Manan Gosalia, in a report earlier this week, set a target price of $54 for First Republic shares in a best-case scenario. That hope was reduced on Wednesday, after Yellen told a hearing of the U.S. Senate's Appropriations Subcommittee on Financial Services that the government "is not considering insuring all uninsured bank deposits." The Morgan Stanley report considered that a potential extension of FDIC insurance could bring a majority of First Republic's customers back. Even if it clinches a cash infusion, the lender will probably need to take losses on securities in its so-called held to maturity portfolio, the Morgan Stanley analysts wrote. In the worst-case scenario, First Republic's shares would sink to just $1, Morgan Stanley analysts estimated.

The latest move to restore calm to restive regional bank stocks came as Pacific Western Bank (PACW.O), one of the regional lenders caught up in the market volatility, said it had raised $1.4 billion from investment firm Atlas SP Partners. While that deal brought some respite to battered banking stocks, First Republic (FRC.N) remains firmly in the spotlight. For now, the rescue of Credit Suisse appears to have calmed the worst fears of systemic contagion, boosting shares of European banks (.SX7P) and U.S. lenders (.SPXBK). Reuters Graphics Reuters Graphics'HEAD IN SAND'The wipeout of Credit Suisse's Additional Tier-1 (AT1) bondholders has sent shockwaves through bank debt markets. Seeking to boost confidence among investors rattled by its $3 billion Credit Suisse rescue, UBS said on Wednesday it would buy back 2.75 billion euros ($2.96 billion) worth of debt it issued less than week ago.

March 22 (Reuters) - U.S. authorities are set to explore ways to bolster financial stability, along with steps to tackle the problems facing First Republic Bank, as central banks assess whether turmoil in banking makes interest rate rises less pressing. SVB's collapse kicked off a tumultuous 10 days for banks which led to the 3 billion Swiss franc ($3.2 billion) Swiss engineered takeover of Credit Suisse by rival UBS (UBSG.S). While that deal brought some respite to battered banking stocks, U.S. lender First Republic (FRC.N) remains firmly in the spotlight. Reuters Graphics Reuters Graphics'HEAD IN SAND'The wipeout of Credit Suisse's Additional Tier-1 (AT1) bondholders has sent shockwaves through bank debt markets. For now, the Swiss bank rescue appears to have assuaged the worst fears of systemic contagion, boosting shares of European banks (.SX7P) and U.S. lenders (.SPXBK).

The Fed's relentless rate hikes to rein in inflation have been partly blamed for sparking the biggest meltdown in the banking sector since the 2008 financial crisis. For now, Credit Suisse's rescue appears to have assuaged the worst fears of systemic contagion, boosting shares of European banks (.SX7P) and U.S. regional lenders. The S&P 500 banks index (.SPXBK) rallied 3.6%, its largest one-day gain since November. Still, Australia's prudential regulator has started asking the country's banks to declare their exposure to startups and crypto-focused ventures following the collapse of Silicon Valley Bank, according to the Australian Financial Review. Market cap of US regional banks included in the S&P 500 regional bank indexDeputy Treasury Secretary Wally Adeyemo said a review of the failures of Silicon Valley Bank and rival Signature Bank was in order.

☆ First Republic seeks new ways to escape unrealized losses
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +5 min

March 21 (Reuters) - First Republic Bank's (FRC.N) efforts to secure a capital infusion continued without success on Tuesday, as the troubled regional lender started to plan for the possibility it may need to downsize or get a government backstop. Bloomberg News reported U.S. officials and Wall Street leaders seeking to aid First Republic were exploring the possibility of government backing that would help overcome the issue of the bank's unrealized losses. JPMorgan is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said. "There are a number of factors lifting the (financial) stocks, including the comments by Yellen. "We believe First Republic remains in crisis," said Jason Benowitz, senior portfolio manager at CI Roosevelt.

☆ First Republic shares volatile as capital infusion remains in limbo
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

March 22 (Reuters) - Shares of First Republic Bank (FRC.N) were volatile in morning trading on Wednesday as the regional lender struggled to raise capital amid worries that it may need to downsize or seek government support. Major banks and private equity firms have so far balked at infusing capital on fear of losses on the bank's loan book and investment portfolio following a rapid rise in interest rates. The bank's shares flitted between gains and losses and were last up 3.6% at 10:31 a.m. Shares have lost roughly 87% of their value so far this month. Reporting by Manya Saini and Amruta Khandekar in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

☆ First Republic slumps after report of potential government backing in deal
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +5 min

March 21 (Reuters) - Shares of First Republic Bank (FRC.N) tumbled 14% in extended trade on Tuesday following a report that a potential deal for the troubled bank could rely on government backing to encourage buyers. Potential government backing in a deal to save First National could involve conditions at the expense of the bank's shareholders, said Dennis Dick, a trader at Triple D Trading in Ontario, Canada. While a sale of the entire bank remains possible, First Republic is currently focused on raising capital, the third source said. First Republic's shares had surged as much as 60% on Tuesday before closing up 30%, but even so First Republic's stock has lost over 80% in value in the past two weeks. JPMorgan is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.

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