Top Executives at First Republic Bank sold $12 million in company stock before shares plummeted, according to the Wall Street Journal.
Here’s ANOTHER First Republic scoop: Executives sold millions in shares in the months before the crash. by @BenFoldy @mcgint https://t.co/fa5RGQ2LFF
You might ask, why doesn’t this show up in SEC filings? …— Charles Forelle (@charlesforelle) March 16, 2023
The stock sale does not show up in SEC filings.
The executives filed insider forms with the FDIC thanks to a loophole in the Securities Act of 1933, the Wall Street Journal reported.
Instead of filing with the SEC, First Republic files insider forms with the FDIC–thanks to a quirk of the Securities Act of 1933. pic.twitter.com/irBqsrAMbx
— Charles Forelle (@charlesforelle) March 16, 2023
First Republic Bank was downgraded to “junk” by the S&P on Wednesday.
“We believe the risk of deposit outflows is elevated at First Republic Bank despite the actions of federal banking regulators and the bank actively increasing its borrowing availability to mitigate risk associated with the bank failures over the last week,” S&P said in a statement.
“Still, if deposit outflows continue, we expect First Republic would need to rely on its more costly wholesale borrowings. This would encumber its balance sheet and hurt its modest profitability,” said S&P, according to Market Watch.
As of December 31, First Republic Bank had $176.4 billion in deposits – 68% of which are above the $250,000 FDIC insurance limit, according to Market Watch.
Customers were lined up at a First Republic Bank in Los Angeles on Saturday to withdraw their money after Silicon Valley Bank failed.
WATCH:
I’ve never seen a bank run in Brentwood Los Angeles in over 40 years — this is at first republic bank branch. People standing in rain pic.twitter.com/k31PqqpyO3
— pjb.eth (@Dr_PhillipB) March 11, 2023
First Republic’s stock tumbled on Wednesday after a massive bank sell off this week.
