First Republic Bank shares plunged after a CNBC report that the lender was likely headed for receivership under the US Federal Deposit Insurance Corporation. The report cited concerns over the bank's lending practices and the potential for losses in its loan portfolio. The bank's wealth management division, First Republic Investment Management, has been a key driver of growth for the bank in recent years, but now faces an uncertain future.
RBC Wealth Management continues to attract advisors from the ailing First Republic Bank, with a California-based duo with $400 million in assets under management joining its San Francisco office. The move follows a similar move earlier this year by another team of advisors from First Republic. RBC's aggressive recruiting strategy appears to be paying off as it seeks to expand its presence in the competitive San Francisco wealth management market.
Morgan Stanley has also been aggressive in its recruiting efforts, scooping up another large First Republic team with $23 million in revenue in San Francisco. The team was led by two top advisors who had been with First Republic for over a decade. Morgan Stanley's acquisition of talent from First Republic underscores the intense competition for talent in the wealth management industry.
It was more than the SVB bank run that put First Republic in a vulnerable position, an analyst says. The bank has been facing increased scrutiny over its lending practices and potential losses in its loan portfolio. The bank's reliance on its wealth management division to drive growth has also put it in a precarious position.
RBC Wealth Management said two advisors from First Republic who oversaw $400 million are joining its San Francisco office. The move underscores RBC's aggressive recruiting strategy as it seeks to expand its presence in the competitive San Francisco wealth management market.
Shares of the bank plunged after it revealed it had shed $72 billion in deposits. The bank's deposit base has been a source of strength for the bank, but the recent decline has raised concerns over its ability to fund its lending activities.
Giverny Capital Asset Management, LLC, an investment management company, recently published its first-quarter 2023 investor letter. The letter discussed the firm's investment strategy and its outlook for the market. The firm did not mention First Republic or any specific companies in the letter.
First Republic Bank spent decades building its wealth-management franchise into a $290 billion behemoth. Now, that business may become a liability as the bank faces increased scrutiny over its lending practices and potential losses in its loan portfolio. The bank's reliance on its wealth management division to drive growth has also put it in a precarious position.
SAN FRANCISCO--(BUSINESS WIRE)--First Republic Bank (NYSE:FRC), a leading private bank and wealth management company, today announced that a... The announcement was cut off and no further information was provided.
