Rewording: Founder of First Republic Bank and Family Members Cash In Big Payday – WSJ

The established First Republic Bank and its founders, James Herbert and Virginia Herbert, along with their family members, recently cashed in a significant sum of money. According to the Wall Street Journal, who first broke the story, the family collected more than $375 million in total after selling nearly 2 million shares of stock in the bank. This move caused the value of the bank’s stock to drop 4.4% after the announcement.

What the Move Entails

The Herbert family, who still own more than 23% of the bank’s shares, sold 1.9 million of those shares at $196.75 each. The bank co-founder, James Herbert, alone sold 500,000 shares in the deal, bringing in nearly $99 million. The source of the funds was not disclosed by the Herberts.

The family has previously faced criticism for the bank’s business model, which has profited from high-value loans to wealthy individuals while underserving low-income clientele.

The Reactions of Investors and Analysts

Several investors and analysts were not surprised by this move, as it can be observed as a standard strategy for banks to increase liquidity in their stocks given the current economic climate. However, some were concerned about the implications of these moves, particularly for those who have invested in similar high-end banks.

Summary

The Herbert family, along with the co-founders of First Republic Bank, sold nearly 2 million shares of the bank’s stock, resulting in over $375 million in earnings. The bank’s stock value subsequently dropped by 4.4%. #NEWS