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, -32.80% 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, -3.78%, one of four big banks to contribute $5 billion as part of the $30 billion deal, was down 0.7%, Citigroup C, -3.00% was down 1%, Bank of America BAC, -3.97% was down1.2% , and Wells Fargo WFC, -3.92% fell 0.8%. Goldman Sachs GS, -3.67% and Morgan Stanley MS, -3.25%, each providing $2.5 billion to the package, were down 0.6% and 0.7% respectively. Bank of New York Mellon BK, -4.10% and State Street STT, -3.99% were down 0.2%, Truist TFC, -7.23% was down 1.5% and and US Bancorp USB, -9.38% was down 1.4% Those four are providing $1 billion each. PNC Financial Services PNC, -4.92% was down 0.9%.
This article was originally published by Marketwatch.com. Read the original article here.