First Republic Banks faces potential curb in Fed’s borrowing; Dow Jones extends losses
|“US bank regulators are weighing the prospect of downgrading their private assessments of First Republic Bank — a move that may curb the troubled firm’s access to Federal Reserve lending facilities”, reported Bloomberg.
“The Federal Deposit Insurance Corporation (FDIC) has been giving the bank time to reach a private deal to shore up its finances (…) senior officials are increasingly weighing whether to downgrade their scoring of the firm’s condition (…) that would likely limit the bank’s use of the Fed’s discount window and an emergency facility launched last month”, said Bloomberg.
Market reaction
Wall Street indexes printed fresh lows. The Dow Jones is falling 0.70% and the S&P 500 drops 0.46% while the Nasdaq gains 0.45%. First Republic Bank shares are falling 30% on Wednesday at $5.78. Two months ago, it was trading at 121.00.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.