(Bloomberg) – Shares of First Republic Bank rebounded in premarketing US trading after falling to a record low on Monday, as investors pondered what to expect next. Midsize lenders are struggling after an offer of help from JPMorgan Chase & Co.
Most read from Bloomberg
Shares jumped as much as 27% in premarket trading in the United States, with regional lenders including Western Alliance Bancorp and PacWest Bancorp also rising. The rally follows a broad recovery in the banking sector across Europe and the United States, as concerns about the contagion eased following UBS Group AG’s rescue deal for the Swiss lender. Credit Suisse Group AG.
The $15 a share bounce still sends the stock down 88% from its pre-SVB price.
JPMorgan Chase CEO Jamie Dimon hatched a new plan to support the First Republic, Bloomberg News reported yesterday, citing people familiar with the situation. That would turn some or all of the $30 billion in deposits a group of US banks pumped into a funding source for the California lender.
However, investor confidence in First Republic has waned after the lender was again taken over by S&P Global Inc. First Republic’s stock price has tumbled over the past two weeks as depositors withdraw after the failure of Silicon Valley Bank dented sentiment.
READ MORE: Four banks collapse and fifth wobble after 11 days of chaos
(Add chart, context)
Most read from Bloomberg Businessweek
©2023 Bloomberg LP
