That’s a hard sell, said Chiaverini, since those assets would probably sell for well above market rate. In exchange, the buyer would receive a preferred equity interest in the company. The second option, said Chiaverini, would be to try to sell some of its loans and securities at the same cost they bought them for. Option two: Appeal to big banks (or private equity)

The lender, he said, had twice the available liquidity of uninsured deposits (excluding the $30 billion received from large banks). “That’ll be a long road, but they do have some liquidity that will enable them to continue,” said Chiaverini.įirst Republic CEO Michael Roffler attempted to assure investors in an earnings call Monday that the bank had enough liquidity to do that. (FRC) stays the course and “muddles along as a standalone company.” That would mean waiting for its securities and loans to mature. The company noted that it is “taking actions to strengthen its business and restructure its balance sheet.”ĭavid Chiaverini, managing director of equity research at Wedbush Securities, told CNN there are just three viable options left. (Photo by Spencer Platt/Getty Images) Spencer Platt/Getty Imagesįirst Republic stocks drops nearly 50% after plunge in depositsįirst Republic said in its latest earnings call that is exploring its strategic options, Wall Street code for searching for a white knight.

bank will reveal its latest financial results but concerns over small and medium-sized banks persist following the collapse of Silicon Valley Bank (SVB) in March. NEW YORK, NEW YORK - APRIL 24: A person walks past a First Republic bank branch in Manhattan on Apin New York City.

I Want to Go Home! by Gordon Korman