It seems as if time has run out at First Republic Bank.
Reuters reported, citing sources, that the US Federal Deposit Insurance Corporation is preparing to put the troubled bank under receivership “imminently”.
Not surprisingly, reports on Friday indicated that time was running out and that no private sector-led bailout was forthcoming. Various reports said that there were banks that were willing to buy and operate FRC within the FDIC resolution mechanism.
Shares of the company fell 43% on Friday and fell sharply this week to $3.51 from $16 at the start of the week. This week’s collapse came as a result of the bank’s report showing $100 billion of the $176 billion in consumer deposits fled, which was worse than analysts had expected.
Equity holders will very likely be wiped out as the FDIC takes over but depositors will be made whole.
For the broader market, this is unlikely to be a meaningful event. Other regional banks reported much smaller deposit drawdowns and stocks held relatively flat during the latest storm. If anything, I suspect the accuracy would help positioning the ring in the rearview mirror and refocusing Economic data
Economic data
Economic data usually comes in the form of news releases that are published daily. This information is very valuable to individual and institutional forex traders, due to the impact of this data on currency prices. Most of the major economic events that are released are reported by sovereign governments around the world. Moreover, there are many economic data points released by private institutions that can also move the market.
Economic data usually comes in the form of news releases that are published daily. This information is very valuable to individual and institutional forex traders, due to the impact of this data on currency prices. Most of the major economic events that are released are reported by sovereign governments around the world. Moreover, there are many economic data points released by private institutions that can also move the market.
Read this term.
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