Part 3/9:
Key Factors Leading to First Republic's Downfall
The root causes of First Republic's failure lie in its financial practices and the unprecedented banking environment. Reports indicated that First Republic saw a staggering $100 billion in customer deposits withdrawn in a short period, leading to a drastic 40.8% net decline from its year-end deposit balance. If the pre-injected funds from other institutions are excluded, the decline would be even steeper, at 56.7% within mere weeks.