Stocks for First Republic Bank bounced back to trading positive after a 36% slump.
First Republic Bank saw 71% of its total value evaporate over the past five days amid the financial panic surrounding the collapse of Silicon Valley Bank. Thursday saw a continuation of this trend throughout the morning, with the San Francisco-based bank losing 36% more of its value. However, the stock experienced a massive recovery, with stocks rebounding to positive.
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While stocks were trading at just $20.24 at 9:30 a.m. on Thursday, a sudden burst occurred at 12:40 p.m., sending the stock skyrocketing to a high of $38 by 1:10 p.m., before stabilizing to over $32, compared to Wednesday's close of $31.16.
The sudden recovery came amid reports from the Wall Street Journal that big banks such as JPMorgan Chase, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs were in talks to rescue the bank.
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Reports said the government was orchestrating the talks, likely further boosting trader confidence.
The reports claimed that the rescue deal could be announced as early as Thursday afternoon.