Another day another bank. According to reports, First Republic Bank is now the latest bank in America to see its shares nosedive as banks continue to discover that they’ve been doing it wrong all along. Bloomberg reports that the bank is also considering its strategic options including but not limited to a sale.
Its bond rating by The Standard & Poor has been downgraded to junk against the backdrop of its troubles. Like with any bank, First Republic is most threatened by customers who may unintentionally trigger a bank run. Banks sometimes can’t liquidate their assets fast enough to cover mass withdraws, in these instances which is how these troubles begin in the first place.
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