First Republic Bank’s shares tanked again on Monday, falling 47 percent and surpassing last week’s lows. The slide follows yet another downgrade in the bank’s credit rating by Standard & Poor’s, which dropped First Republic to B+ from BB+ on Sunday after first lowering it to junk status just last week.
The rating agency said the $30 billion infusion “may not solve the substantial business, liquidity, funding, and profitability challenges that we believe the bank is now likely facing.”
The San Francisco-based bank received the rescue package from 11 major U.S. banks last week in a bid to prevent its collapse. S&P Global Ratings stated that while the package may relieve short-term liquidity pressures, there are significant long-term challenges facing the business….