US Banking Crisis Affects First Republic
In the past few weeks, the closure of Silicon Valley Bank has triggered a crisis in the US banking sector. First Republic Bank faced a similar fate, prompting the industry to take corrective measures. As one of Sweden's largest financial entities, Alecta has decided to act.
Alecta Sells Shares at $728 Million Loss
The US has experienced its biggest banking failures since the 2008 financial crisis, with the collapse of Silicon Valley Bank and Signature Bank. The Federal Reserve intervened to protect depositors in response. Alecta, Sweden's largest pension fund, has sold its First Republic Bank shares at a huge $728 million loss, following the bank's need for a massive rescue effort by some of the country's largest banks.
Yahoo Reports on Alecta's Decision
According to Yahoo, Alecta spokesperson Jacob Lapidus confirmed that the pension fund had sold all its shares in the struggling US lender First Republic Bank at a loss of $728 million.
First Republic Bank Experiences Market Rebound
CNBC reports that First Republic Bank's stock jumped 40% today, attributing the small rebound to statements made by Treasury Secretary Janet Yellen earlier in the day.