FIRST REPUBLIC BANK DEFAULTS
BREAKING NEWS
First Republic bank to suspend dividends on preferred stock
Reuters
April 2023
(Reuters) - First Republic Bank said in a regulatory filing on Friday that it will suspend payments of quarterly cash dividends on its preferred stock "as a measure of prudent oversight."
Last month, the bank suspended its dividend on common stock after the collapse of Silicon Valley Bank.
Large U.S. banks injected $30 billion in deposits into First Republic Bank last month to rescue the lender caught up in a widening crisis triggered by the collapse of two other mid-sized U.S. lenders.
(Reporting by Shivani Tanna in Bengaluru; editing by Diane Craft and Bill Berkrot)
https://finance.yahoo.com/news/first-republic-bank-suspend-dividends-005650755.html
https://www.reuters.com/business/finance/first-republic-bank-suspend-dividends-preferred-stock-2023-04-08/
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First Republic Suspends Dividends on Preferred Stock
The San Francisco bank’s shares have fallen by nearly 90% since the beginning of March
April 2023
First Republic’s shares have fallen by nearly 90% since the beginning of March. PHOTO: PATRICK T. FALLON/AGENCE FRANCE-PRESSE/GETTY IMAGES
First Republic Bank FRC -29.75% decrease; red down pointing triangle, beset by concerns over loan values and deposit flight, said in a regulatory filing Friday that it will suspend payments of quarterly cash dividends on its preferred stock.
The bank said that it was suspending the payments “as a measure of prudent oversight.”
CONTINUE READING AT:
https://www.wsj.com/articles/first-republic-suspends-dividends-on-preferred-stock-63e6d388
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Note: preferred stocks are almost identical to bonds in that bonds are supposed to pay a set payment each year (or each quarter or each month depending on the bond) and preferred stocks ate supposed to pay a set payment each year (or each quarter or each month depending on the preferred stock).
Preferred stocks continue on decade after decade (usually) paying out their dividends on time as promised whereas bonds have a fixed term (of 10 years for example or 30 years or 100 years as other examples….. when bonds expire, the ‘principal’ amount originally paid for the bond ($1,000 for many corporate bonds for example, $10,000 for many US Treasury bonds as another example) gets paid back to the investor.
Investopedia has more info on preferred stocks and bonds.
Defaulting (not paying as promised) on preferred stock payments due is the same as defaulting (not paying as promised) on bond payments due. First Republic Bank is now in default on their preferred stock payments due.
The WSJ also informs us that First Republic Bank ‘ordinary’ stock has lost 90% of its’ value this year. First Republic Bank is bankrupt and this zombie bankrupt bank is - like a zombie extra from The Walking Dead - hobbling along with an assortment of loans, bail outs and hand outs from sugar daddies like Uncle Sam.
Multi-billion dollar loans, bail outs, life support, feeding tubes and hand outs from sugar daddies like Uncle Sam.
There are hundreds and hundreds of zombie bankrupt banks hobbling along - like zombie extras from The Walking Dead - on life support and feeding tubes inserted into their sugar daddies, loans, bail outs and hand outs from their sugar daddies like Uncle Sam.
First Republic merged with the Bank of America about 25 years ago. The branches that still bear the name First Republic Bank are - combined - the 14th largest bank in the USA. The Bank of America (BoA) is the 2nd largest bank in the USA.
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First Republic makes BofA and Merrill much bigger
By Tim McLaughlin
Nov 5, 2010
For nearly three years, First Republic Bank jostled inside the corporate maw of Merrill Lynch and Bank of America Corp., only to be coughed up as…..
https://www.bizjournals.com/boston/print-edition/2010/11/05/first-republic-leaves-bofa-and-merrill.html
Merrill Lynch bought First Republic Bank in 2007. Then the Bank of America purchased Merrill Lynch in 2010 (which included the purchase of First Republic Bank (a package deal). Then the Bank of America spun off much of San Francisco, California based First Republic Bank (long story).
Brace. Now that First Republic Bank has defaulted on preferred stock payments due, what is First Republic Bank going to default on next?