First Republic Bank is struggling to raise capital amid fears it may need to downsize or seek government support.
Why it matters
First Republic Bank's struggles are significant as it is the worst performing stock among the members of S&P 1500 regional banks index. The bank's difficulties in raising capital are causing concern among major banks and private equity firms, who fear losses on the bank's loan book and investment portfolio following a rapid rise in interest rates.
What the papers say
Sources are consistent in reporting First Republic Bank's struggles to raise capital and the concerns of major banks and private equity firms.
How we got here
First Republic Bank's difficulties come amid a wider banking crisis in the US, which has seen the collapse of two mid-sized lenders and fears of contagion. The crisis has led to concerns about bank stability and the safety of deposits.
More on these topics
First Republic Bank is a commercial bank and provider of wealth management services headquartered in San Francisco. It caters to high-net-worth individuals. It operates 93 offices in 11 states primarily in New York, California, Massachusetts, and Florida.
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
Silicon Valley Bank, a subsidiary of SVB Financial Group, is a U.S.-based high-tech commercial bank. The bank has helped fund more than 30,000 start-ups.
Jamie Dimon is an American business executive. He is chairman and CEO of JPMorgan Chase, the largest of the big four American banks, and was previously on the board of directors of the Federal Reserve Bank of New York.
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City.
The Federal Reserve System is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the m