Episode 271: Liquidation pressures led to Republic First Bank failure!

This episode examines a recent report from the FDIC Office of the Inspector General on what caused the failure at Republic First Bank earlier this year. The main reasons stated for the failure include unrealized losses in the bank’s bond portfolio, the inability to utilize secondary credit sources, several failed capital raises, and a dysfunctional board of directors. The main take away is that having unrealized losses in your investment portfolio is a very risky situation for a bank to find itself in. One misstep can lead to a catastrophe. A link to the report is included below.

Link: EVAL-2025-01 Material Loss Review of Republic First Bank.pdf