I’m thinking danger. Trending on Twitter right now is First Republic, so now I will have to chart that one. I don’t know what the story is, but it appears Fox News is now capitalizing on the First Republic problems and Silicon Valley Bank problems on Biden.
The grandstanding Monday will be off the charts on CSPAN.
So, now $FHN and whatever the First Republic symbol is. I’ll go look that up and then bring some links from twitter here.
Okay, the symbol I think we need to follow is maybe First Republic Bank of San Francisco $FRC? (Now I’m off to twitter to look in this trending story. I’m still listening to Cohodes on a LIVE podcast with some very smart young people from Silicon Valley who aren’t the usual Bros.
While I listen, I’ll start looking into $FRC an $FHN. Twitter is alive with forensic accountants, shorts, and loads of great commentary from readers.
It’s looking like no new articles on $FHN, but there is this tweet which might be right. I do remember TD Ameritrade was in line to buy them, but maybe TD Ameritrade got cold feet? I don’t know, but here’s what I have found. And that daily chart up above, man, that’s nasty. Very bearish.
First Republic shares fell 52% in early trading before storming back to near the previous day’s closing level, only to then finish the day down 15%. Investors expressed concerns about unrealized losses on assets at the bank as well as its heavy reliance on deposits that could turn out to be flighty.
First Republic issued a statement in the late morning seeking to calm investors, pointing to its “continued safety and stability and strong capital and liquidity positions.”
$FRC was up 10% early Friday and closed down -14.84% for the day:
Investors have grown wary of First Republic for reasons similar to those that caused concern at SVB. Like SVB, First Republic showed a large gap between the fair-market value and balance-sheet value of its assets. Unlike SVB, where the biggest divergence is in its portfolio of debt securities, First Republic’s gap mostly is in its loan book.
Also, breaking, the podcast I’m listening to said this guy on Twitter is credible: