FRC: First Republic Shakes Off Confidence Boost as Shares Dive

Rescue package from top US banks failed to assuage investor fears and the stock tumbled yet again.

• First Republic Bank is back in freefall after a $30bn financial lifeline from JPMorgan and 10 other banks didn’t shore up investor confidence. The San Francisco-based lender closed down 33% on Friday, making its future outlook all the more uncertain.
• With First Republic’s stock in a tailspin, money managers were once again risk-averse and rotating their portfolio out of banking shares and into government bonds, gold, and – well, if it isn’t Bitcoin. Long-touted as a hedge against uncertainty, BTC rose to its highest level in months.
• Back to the broader picture – First Republic shares have tumbled more than 75% since the troubles wreaked havoc last week. The bank says deposits are handled without hiccups but it's not yet clear whether it won’t end up being sold to a larger entity to contain a spillover effect.