Market thinks an FDIC takeover of First Republic is likely Friday, Bove says


Odeon Capital analyst Richard Bove said the steep slide in First Republic Bank FRC stock on Friday is partly attributed to investor sentiment that the Federal Deposit Insurance Corp. will take over the ailing bank after the closing bell on Friday. “The stock is going to down toward zero because if the FDIC takes over a bank, they do it on a Friday afternoon after the market closes,” Bove said. “The market clearly believes that’s what’s going to happen today.” The FDIC typically acts on a Friday afternoon to give itself time to open the bank up for business on Monday. At last check, First Republic stock was down 37% to…

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