Pressure back on US lender First Republic as European bank fears ease

Shares fall by as much as 50%

There are fears that First Republic Bank will need a second rescue.

Shares of US lender First Republic tumbled as much as 50% on Monday on fears it will need a second rescue to stay afloat, bucking a relief rally in banking shares driven by UBS Group's state-backed takeover of Credit Suisse.

Less than a week after large US banks pumped $30bn in deposits into the mid-size US lender, investors dumped First Republic on worries that infusion of capital would not be enough.