Banking
May 2, 2023
Lawsuit forecast First Republic’s demise a week ahead
Despite a stock drop of 72% after the collapse of Silicon Valley Bank, and the investors’ fear in the lawsuit, First Republic Bank touted in a report to federal regulators its: stable deposit base, strong credit and capitalization. One week later it was no more.
A putative shareholder class action filed against First Republic Bank in San Francisco was a week ahead in forecasting the bank’s demise when it alleged that the company misrepresented its strength in the marketplace to investors before its stock tanked more than 72%, three days after the collapse of its “peer,” Silicon Valley Bank.
Despite those losses and the lawsuit, the bank touted in a report to federal regulators its: stable deposit ...
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