First Republic shares plunge as $100 bln deposit flight jolts investors

First Republic Bank has registered a deposit outflow of over $100bn in the wake of the biggest crisis to affect the banking sector since 2008. The deposit outflows have been significantly worse than Wall Street estimates, and analysts suggest that it will be very difficult to recover from these levels. The uncertainty over bank deposits has caused clients to look for money market funds that offer higher returns or larger ‘too-big-to-fail’ institutions, leaving banks like First Republic under enormous pressure. With this in mind, they plan to shrink its balance sheet and slash expenses, as well as lay off between 20-25% of employees in H2.