(Reuters) – Shares of First Republic Bank (FRCN) rose 10% Thursday morning, bouncing back from a sell-off that wiped out nearly 60% of the bank’s market value this week.
San Francisco-based First Republic disclosed on Monday that it lost more than $100 billion in deposits in the first quarter of the year, prompting a sharp sell-off in the bank’s stock.
Shares of First Republic rose 10% to $6.27 a share in early trade, after plunging to new depths on Wednesday. The bank’s stock closed last week at $14.26 a share.
The First Republic’s fainting this week has put the US banking sector under renewed pressure in its biggest turmoil since 2008.
“The First Republic has lost and continues to lose deposits. No bank on earth can survive if its customers withdraw their money from the bank – especially if it happens all at once,” said Adam Sarhan, CEO of 50Park Investments.
US bank regulators are considering the possibility of lowering their own ratings for the San Francisco-based lender, according to a report by Bloomberg News on Wednesday.
The report said such a cut could lead to restrictions on First Republic’s ability to borrow from the US Federal Reserve.
Additional reporting by Nikit Nishant in Bengaluru; Edited by Soumyadib Chakrabarty
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