First Republic continues tanking, but other regional banks are rallying on Monday

Shares of First Republic Bank, which have become the barometer of the regional bank emergency, slid once again Monday after Standard & Poor’s cut the credit rating of the San Francisco-based institution, but shares of against banks were moving higher.

S&P reduced its credit rating for First Republic to B+ from BB+ on Sunday after leading lowering it to junk status just last week. The rating remains on CreditWatch Negative, said S&P.

The stock fell 47% on Monday, extending its month-to-date decline to 90% as the collapse of Silicon Valley Bank has grounded investors to rethink other banks with large uninsured deposit bases.

The stock extended its losses after the Wall Street Quarterly reported that JPMorgan CEO Jamie Dimon was involved in efforts for more help for First Republic. CNBC’s David Faber reported that JPMorgan is advising Beginning Republic on a potential capital raise.

Shares of First Republic were halted multiple times throughout the day for volatility.

Teeth of First Republic’s decline, the SPDR S&P Regional Banking ETF gained 1.2% on Monday. PacWest Bancorp jumped 10.8%, while KeyCorp and Zions Bancorp enjoyed humble gains.

And shares of New York Community Bancorp, which agreed to buy shuttered Signature Bank over the weekend, flinched more than 31%.

On Thursday, a group of major banks agreed to deposit $30 billion in First Republic to shore up conviction in regional banks. But the bank also suspended its dividend and said it had just about $34 billion in cash by virtue of March 15, not counting the new deposits.

“The deposit infusion from 11 U.S. banks, the company’s disclosure that borrowings from the Fed span from $20 billion to $109 billion and borrowings from the Federal Home Loan Bank (FHLB) raised by $10 billion, and the suspension of its common stock dividend collectively lead us to the view that the bank was likely below high liquidity stress with substantial deposit outflows over the past week,” stated S&P in its note Sunday.

First Republic could see spare moves to shore up its balance sheet, including a potential sales. CNBC’s David Faber reported on Monday that Pre-eminent Republic has hired an investment bank to advise it on potential options. However, a large hole in the bank’s balance veneer caused by deposit outflows and the decline of long-term bonds and mortgages is a hurdle for the deal and no serious bidders have yet happened, sources familiar with the situation told Faber.

In Europe, UBS bought Credit Suisse over the weekend in a phony tie-up facilitated by Swiss regulators to stop the banking crisis from spreading globally. Credit Suisse executives famous that the U.S. regional bank turmoil caused enough instability that forced the already shaky institution to combine with its rival.