IB Net Payout Yields Model

First Republic: Be Weary Of People Bearing Gifts

 

  • First Republic continues volatile trading due to uncertainty regarding the bank's funding sources despite multiple deals.
  • The bank was highly dependent on business accounts with an average deposit balance of $490,000 leading to these uninsured accounts likely fleeing the regional bank.
  • Any rescue package would be highly dilutive with the market cap down to $3 billion.
  • Investors should be wary that all of the recent bank deals have wiped out or diluted shareholders.
First Republic Bank (NYSE:FRC) shareholders have been on a roller coaster ride since the regional bank was first hit by worries of a run on deposits. Federal bank regulators and large domestic banks have

Read the full article on Seeking Alpha. 

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