The share price of First Republic Bank tanked again Friday morning, but did not return to Monday’s lows. Wedbush Securities, a prominent financial services and investment firm, recently issued a downgrade of the stock, citing concerns about the company’s prospects.
Its stock fell more than 23 percent, hitting a low for the day of just above $26 per share. Earlier this week, the stock temporarily fell to a 52-week low of $17.53. Despite Thursday’s announcement that several big banks, including JPMorgan Chase, Bank of America, and Wells Fargo, would provide $30 billion to First Republic to shore up balance-sheet issues. The Wedbush report suggests that First Republic may be facing significant challenges in the near term, which could lead to a distressed sale of the company.
