From Breakingviews - Cool investors buy time for First Republic fix
. As the government and the private sector mull a rescue, the market’s composure buys precious time for reaching a deal.
The difference between now and March, when Silicon Valley Bank and Signature Bank crumpled, is marked. While First Republic lost 30% of its value on Wednesday, the iShares U.S. Regional Bank exchange-traded fundSVB raised the risk of sector-wide contagion, prompting fast regulatory action. Yet First Republic’s problems are happening more gradually.
with financial firms to craft a private-sector lifeline. Judging by the calm elsewhere, they have no need to rush.
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