The stocks of the 11 banks that contributed $30 billion in uninsured deposits to embattled lender First Republic Bank on Thursday were all lower in premarket trade Friday, amid concerns the unprecedented action had failed to prop up the regional bank’s stock. First Republic Bank stock FRC was down 4% premarket, after it said it would suspend its dividend to conserve cash.
First Republic Bank stock FRC was down 4% premarket, after it said it would suspend its dividend to conserve cash. JP Morgan analysts said the move by banks to help a smaller rival was a positive; “however, news late last night of post market drop in First Republic’s stock price is likely to rattle investors as markets remain fragile,” they wrote early Friday. JP Morgan Chase JPM , one of four big banks to contribute $5 billion as part of the $30 billion deal, was down 0.