4 ms·

First Republic Bank Shares Sink 40% After Earnings Report

5 points by SeanAnderson 4y ago

cratermoon 4y ago
Didn't Republic just get all of SVBs assets in a deal that where they were relieved of SVBs obligations?
- SeanAnderson 4y ago
  You're thinking of First Citizens Bank out of North Carolina. FRB is headquartered in San Francisco.
  - cratermoon 4y ago
    I wonder where the convention of using "First" in bank names comes from.
    - feraloink 3y ago
      Good question! I wondered too, especially after applying for my first job after graduating, at Fifth Third Bank https://www.53.com/content/fifth-third/en/personal-banking/about/museum.html https://www.53.com/content/fifth-third/en/personal-banking/a... Their logo is even a fraction, 5/3 It used to be the Fifth Third National of Bank of the Ohio Valley. Until the end of the U.S. Civil War, there wasn't any federal bank regulation. (Congress tried, but they couldn't agree on anything after the charter for the United States' national bank expired in 1836; we didn't have a central bank again until 1913.) Banks even issued their own currency. Better banks made sure to be 100% capitalized so you could always redeem your currency in gold. Other banks didn't, so if they ran out of gold to satisfy redemption requests, they would go out of business. There was no FDIC, so depositors lost everything. So anyway, there were a LOT of small banks. Most had state charters. In a given city, e.g. Cincinnati, the first bank that ever opened there called itself First Bank of Cincinnati. Subsequent banks were Second Bank of Cincinnati, Third Bank of..., Fourth Bank of..., Fifth Bank etc. That's how Fifth Third Bank got its original name. It was a merger of Fifth Bank of Cincinnati and Third Bank of Cincinnati. Fifth was bigger, so they decided to keep it first in the new name. There's still a Second National Bank in Ohio, and there was a Fourth National Bank of Wichita until 1995. There was also a Fourth National Bank of New York City until 1905. The negative connotations of being second-best are bad for branding, so I suspect that any bank that can't call itself "First Bank of..." because there already is one in the area, will just go with an entirely different name instead.
      - cratermoon 3y ago
        > Until the end of the U.S. Civil War, there wasn't any federal bank regulation. (Congress tried, but they couldn't agree on anything after the charter for the United States' national bank expired in 1836; we didn't have a central bank again until 1913.) I should have known it would come down to 1836. Andrew Jackson infamously said "The bank is trying to kill me, but I will kill it", when he vetoed the charter. Jackson, an incorrigible proponent of "states' rights", opposed it on the basis of his belief that a federal institution such as the Bank trampled on states' rights. He also hated banks generally for personal reasons that might sound familiar in the recent world of financial instruments.
- deleted 4y ago
  [deleted]
feraloink 3y ago
This doesn't look good. I thought First Republic Bank was a small bank in New York. I was wrong. It has over $100 billion in assets and seems to be in California? https://www.axios.com/2023/04/25/first-republic-share-price-us-government https://www.axios.com/2023/04/25/first-republic-share-price-...

5 points by SeanAnderson 4y ago

cratermoon 4y ago

Didn't Republic just get all of SVBs assets in a deal that where they were relieved of SVBs obligations?

SeanAnderson 4y ago
You're thinking of First Citizens Bank out of North Carolina. FRB is headquartered in San Francisco.
- cratermoon 4y ago
  I wonder where the convention of using "First" in bank names comes from.
  - feraloink 3y ago
    Good question! I wondered too, especially after applying for my first job after graduating, at Fifth Third Bank https://www.53.com/content/fifth-third/en/personal-banking/about/museum.html https://www.53.com/content/fifth-third/en/personal-banking/a... Their logo is even a fraction, 5/3 It used to be the Fifth Third National of Bank of the Ohio Valley. Until the end of the U.S. Civil War, there wasn't any federal bank regulation. (Congress tried, but they couldn't agree on anything after the charter for the United States' national bank expired in 1836; we didn't have a central bank again until 1913.) Banks even issued their own currency. Better banks made sure to be 100% capitalized so you could always redeem your currency in gold. Other banks didn't, so if they ran out of gold to satisfy redemption requests, they would go out of business. There was no FDIC, so depositors lost everything. So anyway, there were a LOT of small banks. Most had state charters. In a given city, e.g. Cincinnati, the first bank that ever opened there called itself First Bank of Cincinnati. Subsequent banks were Second Bank of Cincinnati, Third Bank of..., Fourth Bank of..., Fifth Bank etc. That's how Fifth Third Bank got its original name. It was a merger of Fifth Bank of Cincinnati and Third Bank of Cincinnati. Fifth was bigger, so they decided to keep it first in the new name. There's still a Second National Bank in Ohio, and there was a Fourth National Bank of Wichita until 1995. There was also a Fourth National Bank of New York City until 1905. The negative connotations of being second-best are bad for branding, so I suspect that any bank that can't call itself "First Bank of..." because there already is one in the area, will just go with an entirely different name instead.
    - cratermoon 3y ago
      > Until the end of the U.S. Civil War, there wasn't any federal bank regulation. (Congress tried, but they couldn't agree on anything after the charter for the United States' national bank expired in 1836; we didn't have a central bank again until 1913.) I should have known it would come down to 1836. Andrew Jackson infamously said "The bank is trying to kill me, but I will kill it", when he vetoed the charter. Jackson, an incorrigible proponent of "states' rights", opposed it on the basis of his belief that a federal institution such as the Bank trampled on states' rights. He also hated banks generally for personal reasons that might sound familiar in the recent world of financial instruments.
deleted 4y ago
[deleted]

feraloink 3y ago

This doesn't look good. I thought First Republic Bank was a small bank in New York. I was wrong. It has over $100 billion in assets and seems to be in California? https://www.axios.com/2023/04/25/first-republic-share-price-us-government https://www.axios.com/2023/04/25/first-republic-share-price-...