First Republic Bank in Talks to Raise Money Amid Crisis

(Reuters) - First Republic Bank (NYSE:FRC) is reportedly in discussions with other banks and private equity firms to raise capital by issuing new shares. This move comes as the bank faces a crisis of confidence from both investors and customers. The New York Times reported that the bank is in talks to raise $500 million to $1 billion.

First Republic Bank was set to receive a $30 billion lifeline from a group of private equity firms, but fears of the escalating crisis caused bank stocks to slide again. The Guardian reported that the lifeline did initially calm nervous US investors, but the recent downturn has caused concern.

On Friday, March 17th, First Republic Bank (NYSE:FRC) stock fell in premarket trading. The stock had already fallen 25% lower after-hours despite receiving the $30 billion lifeline from the country's largest banks.

During Thursday's evening trade, U.S. stock futures were lower. Major benchmark averages finished lower and shares in U.S. regional banks had already dropped. On Wednesday, March 15th, shares in U.S. regional banks also dropped in premarket trading.

The crisis at First Republic Bank has caused concern among investors and customers alike. The collapse of FTX and other crypto lenders last year has also caused some crypto markets to take a hit. Critics of crypto have used this as an opportunity to repeat their mantra.

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