- Shares in First Republic and several other US regional banks tumbled at the Wall Street open on Monday.
- The US government is closely monitoring the situation at First Republic, which serves wealthy clients, and is ready to intervene if the San Francisco-based financial institution comes under stress.
- US Treasury secretary Janet Yellen and President Joe Biden were hoping that the actions taken to protect depositors at SVB and Signature would reassure account holders at First Republic.
- More than half of PacWest’s deposits, 52 per cent, were uninsured at the end of last year.
- PacWest said on Friday that it had $33.2bn in deposits, basically unchanged from $33.9bn at the end of 2022.
First Republic and other US regional banks tumble on fears of deposit flight
Shares in First Republic and several other US regional banks tumbled at the Wall Street open on Monday as investors worried that the weekend actions of the Federal Reserve and the Treasury were not sufficient to stem deposit outflows.