First Republic, PacWest Plunge Amid Wider Bank-Stock Selloff
(Bloomberg) -- First Republic Bank and PacWest Bancorp both plunged Friday as the upheaval at SVB Financial Group spread to other lenders.
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Shares of First Republic tumbled 51% to $47.25 at 9:49 a.m. in New York, while PacWest dropped 37%, triggering trading halts for both.
SVB, the parent of Silicon Valley Bank, plunged as much as 69% ahead of the US market open, before trading in the stock was halted pending news. On Thursday, the shares plummeted 60%, fueling a 7.7% drop in the KBW Bank Index, while First Republic and PacWest also posted record one-day declines.
“The funding pressures facing SIVB are highly idiosyncratic and should not be viewed as a read-across to other regional banks,” Morgan Stanley analysts led by Manan Gosalia said in a note Friday. “That said, we have always believed that SIVB has more than enough liquidity to fund deposit outflows related to venture capital client cash burn.”
--With assistance from Maxwell Zeff.
(Updates share prices in second paragraph.)
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