SVB collapse: First Republic Bank down more than 60% in premarket trading

Shares of First Republic Bank tanked by more than 60% in premarket trading Monday morning, as the effects of the Silicon Valley Bank collapse continue to be felt.

First Republic Bank, a regional bank, tried to sure up any concerns about its stability Sunday by saying it would be enhancing and diversifying its liquidity, but those statements do not appear to have eased concerns.

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Premarket trading shows the bank down to as little as $29.00 per share, compared with its Friday market closing value of $81.76 per share. Once the markets reopen for the first full day of trading since the failure of Silicon Valley Bank, the wider effects of the collapse will begin to be felt by investor movements.

First Republic Bank announced new funding from the Federal Reserve and JPMorgan Chase on Sunday, to give itself roughly $70 billion in unused liquidity in case mass numbers of customers decide to withdraw their money in a panic following SVB’s sudden collapse.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks. As we have done since 1985,