First Republic’s $21bn rout puts S&P status in question

First Republic shares have been under siege for more than a month following the collapse of SVB Financial Group’s Silicon Valley Bank and Signature Bank in March, both of which were also removed from the S&P 500.

At roughly $800m, First Republic has by far the smallest market cap in the US equity benchmark after wiping out more than $21bn in market value. Pic: Eric Thayer/Bloomberg

First Republic Bank’s membership in the S&P 500 could be in jeopardy after the troubled bank’s stock set a new all-time low that pushed its market capitalisation below $1bn (€906bn).

The stock plunged over 30% on Friday and was halted amid reports that a Federal Deposit Insurance receivership is the most likely rescue scenario for the lender. Earlier in the week, the shares were beaten down after the bank’s earnings report showed a nosedive in deposits and raised further questions about its survival.