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https://www.dailymail.co.uk/news/article-11846823/Fears-Silicon-Valley-Bank-collapse-hit-Republic-Bank.html

Fears Silicon Valley Bank collapse could toppleFirst Republic Bank next, as shares slump 40% in a month and investors voice concerns over losses on its investments

Silicon Valley Bank was taken over by the government on Friday morning - the largest bank failure since Washington Mutual's fall in 2008

The bank's demise is a combination of a difficult economic environment and rising interest rates: it remains to be seen whether a savior can be found

Now investors are concerned about First Republic Bank, whose share price plummeted 50 percent on Friday

By HARRIET ALEXANDER FOR DAILYMAIL.COM

PUBLISHED: 21:13 EST, 10 March 2023 | UPDATED: 23:32 EST, 10 March 2023

Fears were mounting on Friday for the future of First Republic Bank, after the collapse on Friday of Silicon Valley Bank and the resulting ripple effect.

Silicon Valley Bank, the 14th largest in the United States, specialized in supporting tech businesses and has been hard-hit by both the economic conditions and inflation.

On Friday it was taken into government control, and executives are hoping that another financial institution will step in to keep the bank afloat.

Other banks were rattled by the demise of Silicon Valley Bank - among them First Republic, the 16th largest, whose shares plummeted 50 percent on Friday, before closing 15 percent down.

First Republic issued a statement in the late morning seeking to calm investors, pointing to its 'continued safety and stability and strong capital and liquidity positions.'

The bank, founded in San Francisco in 1985, has 80 branches in 11 states nationwide - mainly on the West and East coasts.

Michael Roffler, the president and CEO of First Republic

Analysts expressed alarm when they noted that First Republic, like Silicon Valley Bank, had a large difference between the fair-market value (the estimated value) and balance-sheet value (the actual value) of its assets.

Silicon Valley Bank's difference was in debt securities, while First Republic's was in loans.

Similarly, both First Republic and Silicon Valley Bank rely heavily on customer deposits: in First Republic's, wealthy individuals, and in Silicon Valley Bank's, technology startups and venture-capital investors.

With interest rates rising, First Republic's clients have ample other places to park their cash, and could seek to withdraw.

that's a big hole in some pricey realestate…see 3rd pic, Palm Beach Island