On May 3, First Republic Bank plunged 90%, and S&P on TuesdayFirst Republic BankThe junk credit rating was further downgraded after regulators took over the bank and issuedJPMorgan ChaseSold its assets. S&P downgraded the bank's rating to "CC" from "B +" and said it expects First Republic's default to be "almost certain"(Note: First Republic Bank code has been changed, from FRC to FRCB. First Republic Bank is trading on pink sheet!)
S&P said that since JPMorgan Chase assumes the vast majority of First Republic's assets, it is highly likely that the bank will default on any other senior financial debt given the insufficient remaining asset base.
Standard & Poor's also downgraded First Republic Bank's subordinated debt and preferred shares's credit ratings from "B-" to "D".
