With First Republic Bank (FRC) announcing earnings yesterday it took a little time for investors to digest it all and an hour ago FRC common shares took a huge tumble from $11.40 to $8.50. Obviously investors believe there are dire circumstances.
Needless to say the preferred shares which were already battered are now off $1-$2 per share to be trading in the $4.xx area. I certainly have no interest in any of these shares.
All banking preferreds are being dragged lower–a sea of red. It is a good time to stand aside – although as I mentioned this morning I so badly want more banking shares–but adding at this time may be way premature.
It is funny that some of the ‘smart people’ on CNBC said this morning ‘the banking crisis appears to be in the rear view mirror’. NOT!!