JPMorgan's Role in First Republic's Uncertain Future and Other Stock Market News

JPMorgan is advising First Republic Bank on strategic alternatives, including a possible capital raise that could dilute current shareholders or a sale of the bank. First Republic's shares have dropped 90% this month, and the bank has borrowed tens of billions of dollars from the Federal Reserve and the Federal Home Loan Banks to handle deposit outflows. JPMorgan and 10 other banks have deposited a combined $30 billion in First Republic to shore up confidence in the regional banking sector, but the stock has continued to fall. A sale of First Republic to a larger bank is a possibility, but potential losses in its loans and bonds have limited the appetite for such a move.