Odeon Capital analyst Richard Bove said the steep slide in First Republic Bank FRC, stock on Friday is partly attributed to investor sentiment that the Federal Deposit Insurance Corp. will take over the ailing bank after the closing bell on Friday. “The stock is going to down toward zero because if the FDIC takes over a bank, they do it on a Friday afternoon after the market closes. “The market clearly believes that’s what’s going to happen today.” The FDIC typically acts on a Friday afternoon to give itself time to open the bank up for business on Monday. At last check, First Republic stock was down 37% to $3.79 a share. Bove said it would cost the government tens of billions in losses if it takes over First Republic. A potential alternative outcome would be if First Republic sells assets to the 11 banks that provided it with $30 billion last month in more of an industry solution to backstop its balance sheet.
[link] [comments] https://www.reddit.com/r/stocks/comments/1327hc7/analysts_expects_fdic_to_take_over_first_republic/
Login to add comment
Other posts in this group
Please use this thread to discuss your portfolio, learn of other stock tickers, and help out users by giving constructive criticism.
Why quarterly? Public comp
When you sell a stock to buy another stock, do you prefer to set the estimated amount of the capital gains taxes aside in a money market or do you think it better to
Saving for retirement is crucial, but relying solely on a 401(k) might not be enough due to high inflation. Consider investing in growth stocks, especially in the tec
I’m think this is not a good investment as there is no chatter at all on the 52 week low. They are involved in a class action lawsuits by investors and credit card co
Sorry if this is the wrong sub. Let’s say I had $1 million in VOO but I wanted to sell half of it to buy SCHD. It would suck to pay taxes on $500k. So how would you g
Hey guys, I did a deep dive into Crocs. In this analysis, I will do a brief breakdown of the company and go over some quantitative data, qualitative data and estimate
