Balanced News: First Republic shares slid almost 33% after deposit infusion, dragging down other regional banks

On Friday, shares of First Republic were under severe pressure despite the bank receiving aid from other financial institutions the day before. The stock was down 32.8%, the worst performer in the SPDR S&P Regional Banking ETF (KRE). The losses came even after 11 other banks pledged to deposit $30 billion in First Republic as a vote of confidence. There were concerns that Thursday’s deposit infusion may still not be enough to shore up First Republic in the future. Atlantic Equities downgraded First Republic to neutral, noting the bank may need an additional $5 billion in capital. Meanwhile, Wedbush analysts put a $5 price target on First Republic, saying that a takeover could wipe out most of its equity value.