First Republic Bank Frankfurt-listed shares rise after rescue
LONDON, March 17 (Reuters) – The Frankfurt-listed shares of First Republic Bank (FRC.N) rose as much as 5% in in early trading on Friday after large U.S. banks injected $30 billion in deposits into the beleaguered lender on Thursday.
Fears of an imminent collapse of the San Francisco-based bank prompted a deal put together by top power brokers including U.S. Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and JPMorgan Chase CEO Jamie Dimon.
However, while First Republic’s stock closed up 10% on news of the rescue, its shares fell 17% in after-market trading after the bank said it would suspend its dividend and disclosed its cash position and just how much emergency liquidity it needed.
Frankfurt-listed shares in other U.S. banks including Zions Bancorp (ZION.O) and Fifth Third (FITB.O) were indicated up around 3%.
First Republic was caught up in a widening banking crisis triggered by the collapse of two other mid-size U.S. lenders over the past week.
The rescue package came less than a day after Swiss bank Credit Suisse (CSGN.S) clinched an emergency central bank loan of up to $54 billion to shore up its liquidity.
Reporting by Joice Alves; Editing by Amanda Coopr
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