S&P Lowers First Republic Bank for Second Time in a Week

The video discusses the recent downgrade of First Republic's credit rating by SP Global from Double B Plus to B Plus, following a previous cut to junk status. Analysts express skepticism about the $30 billion deposit rescue by larger banks, viewing it as a short-term solution. The market reacted negatively, with First Republic shares dropping 33%. The video highlights concerns about the bank's future, given its struggles with deposit outflows amid recent US bank failures, and speculates on potential receivership or acquisition.

What was the new credit rating assigned to First Republic by SP Global Ratings?

• B Plus

• Triple B

• A Plus

• Double B Plus

How much money was deposited into First Republic by larger banks in an attempt to rescue it?

• $10 billion

• $40 billion

• $20 billion

• $30 billion

What was the market's reaction to the rescue attempt for First Republic?

• Shares increased by 10%

• Shares decreased by 33%

• Shares remained stable

• Shares increased by 33%

What challenge does First Republic face in attracting deposits?

• High interest rates

• Lack of customer trust

• Limited branch network

• Regulatory issues

What are the potential outcomes for First Republic's future?

• Expansion into new markets

• Receivership or acquisition

• Introduction of new products

• Partnership with tech companies