First Republic Bank shares soar 23% after days of panic

The shares of the punished American bank First Republic soared more than 23% on the morning of this Tuesday, during electronic operations prior to the opening of Wall Street, after several days of deep falls as a consequence of the storm that has raged over American and European banks.

An hour and a half before the Wall Street bell tolled, stocks of First Republic they rose 23.89%, after another 40% had sunk on Monday.

This rebound coincides with a speech by the Secretary of the Treasury, Janet Yellen, in which she assured that the authorities are willing to guarantee the deposits of other banks in trouble, as they already did with the ill-fated Silicon Valley and Signature, which were intervened by the Government two weeks ago.

”The steps we took were not focused on helping specific banks or types of banks. Our intervention was necessary to protect the general US banking system (…). And similar actions could be justified if smaller institutions suffer massive withdrawals of deposits that present a risk of contagion.Yellen said.

A dozen large US banks came to the rescue of First Republic last week and injected 30,000 million dollars. However, this move did not convince its clients and investors and its shares continued to free fall.

On Monday, it emerged that JPMorgan Chase CEO Jamie Dimon is leading a new round of talks with other big US banks to try to stabilize the battered institution.

The rise of First Republic It coincides with a general revaluation of the country’s regional banking titles and the stock fund that brings together entities in the sector, the SPDR S&P Regional Banking ETF, rose 4.27% this morning.