What’s Going On With First Republic Bank Stock Today?

First Republic Bank FRC shares are trading significantly higher Tuesday as part ofwhat appears to be a relief rally in the financial sector as several bank names bounce back after facing heavy selling pressure over the last few trading sessions.

What Happened: Several banks sold off following the collapse ofSVB Financial Group SIVB last week.

When inflows turned to outflows,SVB was forced to sell some of its longer-term treasuries at a loss and propose a public offering to cover increasedwithdrawal requests, which sparked a bank run and ultimately led to its downfall.

Related Link:Why Silicon Valley Bank Collapsed: A Simple Explainer

The biggest banking collapse since the 2008 financial crisissparked fears of contagion across thebroader financialsector.

Over the weekend, the Fed stepped in to inject liquidity into the situation andannounced plans to createa new Bank Term Funding Program centered around protectinginstitutions

First Republicon Sundayannounced that it had received additional funding to strengthen its balance sheetfrom the Federal Reserve andJP Morgan Chase & Co JPM .

In a statement, Jim Herbert, founder and executive chairman of First Republic, and Mike Roffler, CEO and president of First Republic, said: "First Republic's capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks."

FRC Price Action: First Republic shares fell more than 60% on Monday after giving up more than 30% last week. The stock is bouncing back Tuesday.

First Republic shares were up 47.4% at $45.99 at the time of writing, according toBenzinga Pro.

Photo: courtesy of First Republic.