JPMorgan is advising First Republic on another potential lifeline, sources say.


NY
CNN

Investment bank JPMorgan Chase was hired to advise First Republic as regional bank is trying to allay fears about his financial situation, people familiar with the matter told CNN.

First Republic’s stock price fell 90% to a record low in the past month as investors scrutinized lenders with large numbers of uninsured depositors – a response to the collapse of Silicon Valley Bank and Signature Bank earlier this month.

The fall of the First Republic continued even after 11 of America’s largest banks, including JPMorgan, Citigroup and Wells Fargo, provided the First Republic $30 billion rescue last week Despite these efforts, both Moody’s and S&P Global Ratings downgraded First Republic’s credit ratings over the weekend.

Now, San Francisco-based First Republic has hired investment bank JPMorgan to help management explore its options, including potentially raising additional capital, people familiar with the matter told CNN.

Both JPMorgan and First Republic declined to comment. The news of the JPMorgan hiring was previously reports CNBC

Shares of First Republic rose 22% in premarket trading on Tuesday, rebounding from a 47% drop on Monday.

Jim Herbert, founder and executive chairman of First Republic, and CEO Mike Roffler last week expressed their “deep appreciation” to the big banks for their $30 billion lifeline.

“Their collective support strengthens our liquidity position, reflects the continued quality of our business, and is a vote of confidence for First Republic and the entire US banking system,” First Republic executives said in a statement last week.