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00:00This is what S & P said yesterday about First Republic. This line out here, I just thought was scathing. Attracting meaningful deposits will be difficult. Jared, how do they turn that around? Thank you for coming on the program, John. And time will turn it around, of course. But you're right, they have focused very successfully on the large net or depositor in those depositors, as we've seen with the other banks that have seen deposit flight have been moving out. So we need to see some first quarter results. I know that's not that close. Results will probably come out mid April, but we need to see where those deposit levels are. We saw the big banks, as you know, deposit about 30 billion into the bank last week. And we anticipate that as consent as confidence comes back to this company, because the company has made incredible profits over the years, its credit quality is superb, but they have the mismatch on the assets versus the liabilities, which is what everybody is concerned about. Some people point to ongoing fear of deposit outflows or deposit catharsis. As one analyst called me yesterday, because of the discount window at the Federal Reserve and the borrowing levels rising to levels that we have never seen before that exceed what was at the peak of 2008. One of the crisis measures. What do you make of that in terms of the breadth of the need for this capital? It is really interesting, Lisa, because you're right, the numbers were extraordinarily high on Thursday when they were released. First Republic pointed out that they were into the window at one point for 100 billion dollars last week. And the totals, as you might recall, were about a hundred and fifty two billion. So though the number was very large. I suspect that two or three banks, First Republic being one Silicon Valley as well as signature, were probably the bulk of what was borrowed from the window. And when we talked to the regional banks, we're seeing no evidence of deposit flight. Yes. Is there some deposits leaving? But that's relatively normal. So I it's I understand the concern and I understand people saying, you know, the small banks are going to lose deposits. Now, the weekly AIG data, which came out on Friday. Now, granted, this was for the cut at March 8. So it was before the crisis started. But deposits were up for the small banks. We'll see what happens this Friday when those numbers come out.

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Confidence Will Return to First Republic: RBC's Cassidy

RBC Capital Markets Managing Director Gerard Cassidy says First Republic Bank has superb "credit quality" and that he expects confidence to return to the bank. He made the comments on Bloomberg Television after S&P Global cut the lender's credit rating for the second time in a week, warning that a $30 billion rescue deal had not resolved the lender’s challenges. (Source: Bloomberg)

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