Sweden’s largest pension fund, Alecta, has sold its shares in First Republic Bank at a staggering loss of $728 million. This follows the recent rescue efforts taken by some of the biggest banks in the US after First Republic’s plunging stock prices. The closure of Silicon Valley Bank caused a crisis in the US banking sector, leading to First Republic’s challenging situation last week. As the sector attempts to rebound, Alecta is taking steps to protect itself from further risks.
Sweden’s largest pension fund Alecta takes action
In recent weeks, the United States has been shaken by a burgeoning banking crisis. The collapse of Silicon Valley Bank and Signature Bank constituted the country’s most significant banking failures since 2008, prompting intervention from the Federal Reserve to safeguard depositors. Now, Sweden’s largest pension fund, Alecta, has sold its shares at First Republic Bank at a substantial $728 million loss, according to spokesperson Jacob Lapidus. This follows First Republic’s precarious position as one of the next banks poised to face trouble and require assistance from multiple large institutions in order to survive.
First Republic Bank saw a substantial recovery in the stock market today. The bank’s shares rose by 40%, likely due to remarks made by United States Treasury Secretary Janet Yellen earlier today.
