FRC fluctuated around 50% for a week! Bottom bank stocks or not?

$First Republic Bank(FRC)$ has fluctuated up and down by as much as 30% and 50% respectively in recent days.

It declined more than 20% because....

1) Institutions downgrade $First Republic Bank(FRC)$ 's rating

Moody's has re-evaluated FRC and other banks' credit situations, but S&P and Fitch downgraded FRC's rating, citing liquidity risk due to the bank's primary clients being wealthy West Coast residents with a lot of uninsured deposits.

Additionally, Fitch noted that 61% of FRC's investment portfolio consists of long-term municipal bondsthat may not be able to help the bank cope with potential liquidity risks.

2) It's rumored that the bank might be acquired by others to solve the liquidity risk

FRC is also considering selling itself or issuing new stocks to improve short-term liquidity, causing investors' sensitivity to be triggered, leading to a 30% drop in stock prices today.

It turned to rise after....

11 banks, including Bank of America, JPMorgan, and Goldman Sachs, have come together to raise $30 billion to help stabilize FRC's situation, causing FRC's stock to surge more than 10%.

This cooperation is considered beneficial to stabilizing the US banking system and potentially an opportunity for investors.

I bottomed $First Republic Bank(FRC)$ and sell it at high point yesterday. 

But I'm not sure whether I should do day trading today cause it's Quadruple Witching Day tonight. Watch out before you trade.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • Juliaaa11
    ·03-17
    TOP
    tq. Maybe it will really be acquired, the large banks are going to start monopolizing.
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    • Zlatan
      j
      03-18
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    • NgKenny
      Nice
      03-18
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  • Bingo! Quadruple witching day again. Thanks for heads up, let's hold popcorn and eat
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  • Violent fluctuations have not yet stopped...
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  • Gloria112
    ·03-17
    who bought at 17.53 is really a genius
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  • Great ariticle, would you like to share it?
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  • Trevelyan
    ·03-17
    I think FRC will go up and down one more time.
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  • fxaw
    ·03-23
    i respect those who buy this stock
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  • jethro
    ·03-23
    thanks for sharing
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  • Penthon
    ·03-22
    if you're gone....
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  • Rainbow99
    ·03-17
    👌 good to know
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  • xiaojn
    ·03-26
    no
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  • Carrotski
    ·03-19
    👍
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  • maxcheng
    ·03-19
    👍
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  • boomer9595
    ·03-19
    thanks
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  • TheTraDer
    ·03-18
    ok
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  • KY56
    ·03-18
    NIce. 👍🤓
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  • Silverlitz
    ·03-18
    👍🏼
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  • RKT
    ·03-18
    Ok
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  • WEI3833
    ·03-18
    👍🏻
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  • Gaamy
    ·03-18

    Nice

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