Thud on Wall Street for the title of First Republic Bank which lost more than 47 (-47.29%) at the end of the session in New York. The plunge comes after Standard & Poor’s cut the San Francisco bank’s credit rating for the second time since Wednesday. The 30 billion dollar aid granted by the major American institutes failed to reassure, just as the wedding between Credit Suisse and Ubs failed. And faced with a situation that threatens to precipitate, with possible shock waves throughout the system, a new bailout plan is being studied to strengthen the bank’s capital. Working on the initiative is the managing director of JPMorgan Jamie Dimon who, as in 2008, imposes himself on the scene as a protagonist. During the financial crisis Dimon earned the nickname “Wizard of Wall Street” and many hope that he can now work magic for First Republic. His first attempt was unsuccessful: having brought together the 11 major American banks to ensure the bank 30 billion in deposits has not swept away doubts about the sustainability of First Republic. Now together with the other administrators of the American giants, Dimon is studying the possibility of converting all or part of the 30 billion dollars agreed into capital. The negotiations are underway and – according to rumors – they also include the American authorities, engaged over the weekend in the rescue of Credit Suisse which seems to have made them forget, according to critics, the problems at home. Weighing on First Republic is the flight of deposits but also the downgrades decided by S&P, two in a week with which its rating is now ‘B+’. The 30 billion deposits could ease the pressure on liquidity in the short term but – the agency explained – could not solve the substantial funding and profitability challenges that we believe the bank is facing”. ( & Poor’s cut the San Francisco bank’s credit rating for the second time since Wednesday.
Tonfo a Wall Street di First Republic Bank – 47%