Banking Crisis Redux Seen as Unlikely; ‘This Isn't the Story of 2008'
chance of success. First Republic Bank's failure is not expected to cause much more turmoil in the banking business.
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First Republic lost 100 billion dollars in deposits during its March run. (Jeff Chiu/Associated Press)
Analysts do not expect First Republic's failure to cause a new wave of turmoil in banking.
First Republic lost deposits so rapidly that the business model of the bank was no longer valuable, said Steven Kelly a senior researcher with the Yale Program on Financial Stability. This made it difficult for the bank raise capital. (
In the panic, customers withdrew around $100 billion.
The bank revealed last week.
This is the final stages of the initial panic. First Republic's troubles began as a result SVB and Signature. Kelly stated that it was a run against the business model. This is not the 2008 story, when one bank collapsed and investors focused their attention on the next largest bank that would wobble.