Finance

First Republic Shares Sink in Sign of Broadening SVB Contagion

  • U.S. bank says Fed, JPMorgan Push Liquidity to $70 Billion
  • Says more liquidity available via Fed’s new lending facility
Rattner: People Need to Be Confident in Regional Banks
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The turmoil following the collapse of Silicon Valley Bank continued to spread Monday, with First Republic Bank shares falling a record 62% despite efforts by the US regional lender to reassure investors on its liquidity.

Declines accelerated despite a statement from the bank late Sunday that it had more than $70 billion in unused liquidity to fund operations from agreements that included the Federal Reserve and JPMorgan Chase & Co. The KBW Bank Index dropped 12%, for the biggest slide in three years.