Bank equity is weird because it directly feeds into the funding cost for the bank’s massively-levered balance sheet. That said, I agree something is off here. First Republic (and Credit Suisse) may be (and have been) better off as private companies.
Bank equity is weird because it directly feeds into the funding cost for the bank’s massively-levered balance sheet. That said, I agree something is off here. First Republic (and Credit Suisse) may be (and have been) better off as private companies.