Yesterday evening the news exploded with reports of First Republic Banks shares dropping by almost 50% from its peak just under 2 days ago. The bank was only saved because of a $30 billion cash injection. This doesn't quell the fears that it could be the third bank to fall in the worst banking crisis we've seen since 2008.
First Republic Bank has a few options to save themselves from going under:
1. Be bought by a bigger company.
The first option is to get bought by another bank, a company that's looking to expand into banking or even a private investor. This means they would be able to let them take the losses for the company without going under. One of the problems with this is that if First Republic Bank is still doing poorly after its bought then its in real danger that it could be shut down by the owner.
2. Sell Assets.
The second option is selling enough of its assets that it can stay afloat long enough to become profitable again or get bought. This looks like there best option in this situation. Cut their losses and focus on rebuilding.
3. Employee layoffs.
Finally, employee layoffs could save them money in the long run and keep the alive long enough to be rescued by option 1. There going to have to get money from somewhere if they want to stay above the water otherwise their just as doomed as signature bank and silicon valley bank.
First republic banks best option in my opinion is to hope for option 1 but a mix of options 2 and 3 could also save them even though its at a high cost.
Meanwhile, bitcoin rallying behind this rose to $28400 overnight because, after all, wasn't bitcoin built to be an alterative to banks?
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This is was not intended to be investment advice! The article you have just read was written by an incompetent fool. Please always double check the facts and do your own research.
