First Republic Bank, Credit Suisse Group, Charles Schwab, Tesla, Roku, Block, and Pinterest were in the spotlight this week. Let’s find out how their stocks reacted to recent events.

Major US banks try to save First Republic Bank

Major US banks try to save First Republic Bank

On Monday 13 March, the stock price of California-based mortgage lending bank First Republic Bank (NYSE: FRC) plummeted 61.83% to $31.21 per unit. The fall was provoked by investors fearing the crisis in the US banking sector will worsen after the recent collapse of Silicon Valley Bank, Silvergate Capital Corp., and Signature Bank.

On Tuesday, First Republic Bank rebounded 26.98% to $39.63 but dropped 21.37% to $31.16 on the following day. On Wednesday, it became known that the bank's management is considering a sale.

On Thursday, First Republic Bank received $30 billion in deposits from eleven major US banks, including JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), and Wells Fargo & Company (NYSE: WFC). On the same day, its stock reacted with an appreciation of 9.98% to $34.27.

The Swiss central bank ready to support Credit Suisse

The Swiss central bank ready to support Credit Suisse

Stocks in the major Swiss bank Credit Suisse Group AG (SIX: CSGN) lost 32% from Monday to Wednesday, falling to CHF 1.70 (Swiss francs) per unit, marking a new all-time low. This was a consequence of the US banks’ collapse.

However, in the last three months of 2022, clients pulled out about $120 billion from Credit Suisse amid deteriorating confidence in this lender due to its worrisome financial situation. The fund withdrawals continued into 2023, even after Credit Suisse raised CHF 4 billion from shareholders. Harris Associates, which was the bank's largest shareholder with a 10% stake, sold it in its entirety.

On Thursday 16 March, Credit Suisse Group AG announced its intention to access the credit facility of Schweizerische Nationalbank (SIX: SNBN), which serves as Switzerland's central bank, as well as short-term liquidity of up to CHF 50 billion. The national bank announced its readiness to provide financial support. The news had a positive effect on the stock of Credit Suisse Group AG: at the close of trading, it surged 18.82% to CHF 2.02.

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Charles Schwab management bought shares in the company

Charles Schwab management bought shares in the company

It was not a good week for the financial sector, and US banking and brokerage Charles Schwab Corp. (NYSE: SCHW) was no exception. On Monday, the general environment in the segment sent its stock down 11.57%, hitting $51.91 per unit.

After it appeared that top Charles Schwab Corp. executives, including CEO Walt Bettinger, had bought nearly $7 million worth of their company's shares, the stock price climbed 14.7 percent to $59.55 on Tuesday and Wednesday. However, by the close of the trading session on Thursday it had already fallen 2.8% to $57.88 per unit.

Tesla, Roku, Block, and Pinterest stocks rise in value from Monday

Tesla, Roku, Block, and Pinterest stocks rise in value from Monday

On Monday, the Ark Innovation ETF (NYSE: ARKK), ARK Next Generation Internet ETF (NYSE: ARKW), and Ark Fintech Innovation ETF (NYSE: ARKF), which are managed by Cathie Wood, began actively buying up shares of Tesla Inc, Roku Inc, Block Inc, and Pinterest Inc.

As a result, since Tuesday, Tesla Inc (NASDAQ: TSLA) stock rose 5.5% to $184.13 per unit, Roku Inc (NASDAQ: ROKU) surged 9.5% to $65.18, Block Inc (NYSE: SQ) gained 8.1% rising to $75.09, and Pinterest Inc (NYSE: PINS) soared 12% to $26.53.

Separately, during the week, Katie Wood's funds bought shares in Jack Dorsey's Block Inc., which develops solutions for electronic payment acceptance and processing. It bought shares with a value of almost $6.4 million on Monday and $13.7 million worth of shares on Tuesday.

Summing up

This week, eleven major US banks committed $30 billion to save First Republic Bank from collapse. The Swiss central bank agreed to support Credit Suisse Group AG at this critical time with a CHF 50 billion credit line.

The CEO and other top executives of Charles Schwab Corp. bought $7 million worth of their firm’s stock to show their confidence in the company's financial strength. Katie Wood's funds distinguished themselves by acquiring stakes in Tesla Inc., Roku Inc., Block Inc., and Pinterest Inc.


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Server A.

Server is the guru of searching for market insights. Since 2019 he writes about everything that might be useful to the investor, focusing on the stock market and its assets.