It's looking like a death spiral in shares of First Republic after the bank reported much worse deposit numbers than expected. At the market open, shares fell but tried to steady ahead of the March low of $11.54.
That level has since broken as the nightmare for shareholders continues.
The bank's brand is badly damaged now and the company talked about 'strategic alternatives' which means selling itself. However there isn't much equity value there.
The question is: Does it mean anything for the broader market? I'd argue it doesn't mean much. Looking at the broad KRE ETF of regional banks, it's down 1.7% with other problematic regional banks down 2-5%. That's not great but it's hardly catastrophic and there's still reason to believe that deposit flight wasn't as bad at other banks (though that's worth watching).
There's a big bid in bonds right now which may be the start of a flight to quality but could also represent upbeat comments on moderating inflation in corporate earnings.
US consumer confidence is due at the top of the hour.
