(Bloomberg) — First Republic Bank experienced a surge in its stock price, setting a new record, and leading a broad-based rally in US lenders. This comes amid discussions aimed at offering further support for the beleaguered lender.
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The stock jumped 30%, bouncing off the record-low level it closed at Monday, with fellow regional lenders including Western Alliance Bancorp and PacWest Bancorp also staging double-digit moves higher. The KBW Regional Banking Index surged by 4.8% for its biggest gain since January 2021, boosted by a broad rally across the sector.
First Republic extended its rally to a session high, gaining as much as 60%, following a Reuters report that the lender is looking at how it could downsize if attempts to raise new capital fail. Shares had earlier climbed on optimism over a new plan under discussion to aid First Republic. Under the plan, some or all of the $30 billion in deposits that a group of US banks injected would be converted into a capital infusion.
A potential conversion “could add…
2023-03-21 15:17:01
Article from finance.yahoo.com