The American First Republic Bank may partially reduce the number of staff after its shares collapsed. This was announced on March 21 by Reuters.
According to him, the credit organization is also working to find new investors and is in contact with investment bank JP Morgan Chase.
“First Republic Bank, a regional US bank struggling to remain viable after a deposit outflow, is considering ways to cut back if its efforts to raise new capital fail,” the agency said.
First Republic Bank was another institution hit by the US banking crisis that began with the bankruptcy of Silicon Valley Bank (SVB) on March 11. It went bust in less than two days. After the bank made an unsuccessful operation with securities, depositors began to withdraw funds sharply from their accounts. The bankruptcy of such a large credit institution was the first since the financial crisis of 2008.
After the sale of the British branch of SVB, shares of American banks began to lose positions in the auction. Thus, Western Alliance securities fell by more than 44%, and First Republic Bank by almost 59%. Shares of banks PacWest, Zions and UMB Financial fell in price by 20.7-27.5%.
Against the background of the banking crisis, US President Joe Biden tried to convince American citizens that they can be confident in the security of the country’s banking system. He promised to ask Congress and “regulators of the banking sector to tighten the rules for banks and reduce the threat that this kind of bank failure will happen again.”
The Kremlin, in turn, said that the bankruptcy of American credit institutions would not have an impact on the banking system of the Russian Federation.
On March 18, The Wall Street Journal reported that 186 more US banks were facing bankruptcy.
