First Republic Bank (FRC-US) continued to show a cliff-like collapse on Monday (13th), leading the decline in all US bank stocks.
The stock fell 60% in premarket trading on Monday, following a 33% drop last week. PacWest Bancorp (PACW-US) down 37%, Western Alliance Bancorp (WAL-US) down 29%. Zions Bancorporation (ZION-US) fell 11%, while KeyCorp (KEY-US) down 10%. Bank of America (BAC-US) fell 6% in pre-market trading, while Charles Schwab (SCHW-US) down 20%.
The Fed has created a new bank term funding program that will provide banks with loans for up to a year in exchange for high-quality collateral such as U.S. Treasury bonds. The conditions for the discount window have also been relaxed.
First Republic Bank said on Sunday that it had withdrawn from the Fed and JPMorgan Chase (JPM-US) for $70 billion in additional liquidity. The bank said this was before any funds became available from the latest Fed facility.
“First Republic’s capital and liquidity position is very strong and its capital remains well above the regulatory threshold for a fully capitalized bank,” founder Jim Herbert and CEO Mike Roffler said in a statement.
The SPDR S&P Regional Banking ETF (KRE-US) fell 4% in premarket trading on Monday.
