{"id":1921127,"date":"2023-04-29T03:41:58","date_gmt":"2023-04-29T07:41:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-admin-scrambles-to-respond-to-collapse-of-another-bank\/"},"modified":"2023-04-29T03:45:34","modified_gmt":"2023-04-29T07:45:34","slug":"biden-admin-scrambles-to-respond-to-collapse-of-another-bank","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-admin-scrambles-to-respond-to-collapse-of-another-bank\/","title":{"rendered":"Biden Admin Scrambles To Respond to Collapse of Another Bank"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-admin-scrambles-to-respond-to-collapse-of-another-bank%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1921127&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>First Republic Bank Shares Plummet to Record Low<\/h2>\n<p>Investors were left reeling on Friday as shares of First Republic Bank took a nosedive, losing almost half of their value in a single day. The sudden drop came after a CNBC report suggested that the troubled lender was likely headed for receivership under the U.S. Federal Deposit Insurance Corporation (FDIC).<\/p>\n<p>The stock plummeted by as much as 46% to $3.33, resulting in a market capitalization of just $620 million. Trading in the bank&#8217;s shares was halted multiple times as panic set in.<\/p>\n<h3>Government-Brokered Rescue Deal Offers Hope<\/h3>\n<p>Earlier in the day, a Reuters report had suggested that a government-brokered <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/french-president-calls-for-10-cut-in-energy-use-will-ration-power-as-a-last-resort\/\" title=\"French President Calls For 10% Cut In Energy Use, Will Ration Power As A \u2018Last Resort\u2019\">rescue deal<\/a> for First Republic was in the works, which had initially pushed the bank&#8217;s shares up by as much as 6.6%. According to the report, the FDIC, the Treasury Department, and the Federal Reserve had begun orchestrating meetings with financial companies to discuss a potential lifeline for the beleaguered bank.<\/p>\n<p>The government&#8217;s involvement was helping to bring more parties, including banks and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elizabeth-warren-calls-on-sec-to-investigate-potential-market-manipulation-cautions-against-internet-trading-schemes-a-flash-mob-with-money\/\" title=\"Elizabeth Warren Calls On SEC To Investigate Potential \u2018Market Manipulation,\u2019 Cautions Against \u2018Internet Trading Schemes,\u2019 \u2018A Flash Mob With Money\u2019\">private equity firms<\/a>, to the negotiating table, one of the sources for the report had told Reuters.<\/p>\n<h3>Deposit Declines Raise Concerns<\/h3>\n<p>Despite the potential for a rescue deal, concerns remained that deposit declines at First Republic could worsen and spark a fresh meltdown in the U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cryptocurrency-seeks-to-lure-firearms-companies-amid-threat-banks-will-cut-off-gun-industry\/\" title=\"Cryptocurrency Seeks to Lure Firearms Companies Amid Threat Banks Will Cut Off Gun Industry\">banking industry<\/a>, even as it recovers from the collapse of two regional lenders last month.<\/p>\n<p>First Republic had reported that its deposits had slumped by more than $100 billion in the first quarter of the year, adding to the sense of unease among investors.<\/p>\n<h3>Worst-Performing S&#038;P 500 Stock<\/h3>\n<p>The San Francisco-based lender&#8217;s stock has more than halved so far this week, and since the start of the year, it has lost nearly 97% in value, making it the worst-performing S&#038;P 500 stock.<\/p>\n<p>&#8220;The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-admin-scrambles-to-respond-to-collapse-of-another-bank\/\" title=\"Biden Admin Scrambles To Respond to Collapse of Another Bank\">potential worst-case scenario stemming<\/a> from the collapse of Silicon Valley Bank appears to have been averted,&#8221; said Mark Haefele, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-plans-to-unveil-advisory-warning-for-americans-doing-business-with-deteriorating-hong-kong\/\" title=\"Biden Plans To Unveil \u2018Advisory\u2019 Warning For Americans Doing Business With \u2018Deteriorating\u2019 Hong Kong\">chief investment officer<\/a> at UBS Global Wealth Management, in a note. &#8220;But the problems at First Republic are a reminder that further problems remain possible.&#8221;<\/p>\n<p>Investors will be watching closely to see how the situation develops in the coming days and weeks.<\/p>\n<div>\n<h3>Key Takeaways:<\/h3>\n<ul>\n<li>First Republic Bank shares plunged by almost 50% in a single day after a report suggested the lender was headed for receivership under the FDIC.<\/li>\n<li>A government-brokered rescue deal is reportedly in the works, but concerns remain about deposit declines and the potential for a fresh banking industry meltdown.<\/li>\n<li>First Republic is the worst-performing S&#038;P 500 stock, having lost nearly 97% of its value since the start of the year.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters)\u2014Shares of First Republic Bank plunged to a record low on Friday, losing nearly half of their value after a CNBC report said the troubled lender was most likely headed for receivership under the U.S. Federal Deposit Insurance Corporation (FDIC). The stock fell as much as 46% to $3.33, giving it a market capitalization of<\/p>\n","protected":false},"author":66,"featured_media":1921128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[4496,5373,3620,7385,6354,11809],"class_list":["post-1921127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon","tag-admin","tag-bank","tag-biden","tag-collapse","tag-respond","tag-scrambles"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1921127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1921127"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1921127\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1921128"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1921127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1921127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1921127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}