What's happened
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.
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