First Republic shares tumble again as liquidity fears linger

By Medha Singh and Ankika Biswas

(Reuters) - Shares of First Republic Bank closed 47% lower on Monday, adding to recent losses as concerns about its liquidity continued to worry investors despite a $30 billion influx of deposits last week.

The bank's stock fell as much as 50% and closed at $12.18 after the New York Stock Exchange halted it several times due to volatility.

S&P Global downgraded First Republic deeper into junk status on Sunday and said the recent cash infusion from 11 large U.S. banks last week may not solve its liquidity problems.

"We do not view this deposit infusion--which has an initial maturity of 120 days--as a longer-term solution to the bank's funding issues," S&P wrote. "We think attracting meaningful deposits will be difficult, constraining the bank's business position."

Large U.S. banks injected $30 billion in deposits into First Republic Bank on Thursday, swooping in to rescue the lender caught up in a widening crisis triggered by the collapse of two other mid-size U.S. lenders over the past week.