Filed under “shutting the barn door after the horse has bolted”. First it was Silicon Valley Bank now it’s San Francisco-based First Republic Bank taking a hit.

Like Silicon Valley Bank, First Republic is another bank catering to “free-money” startups specializing in GREEN ENERGY “stuff”.

Investing bank deposits in long dated bonds in a rising rate environment is a plan destined to fail.

The Fed increasing rates 500 basis points in a year was and is folly.

First Republic’s shares are now down 86% from their peak in November of 2021.  And yet, it remained rated a still-respectable A- by S&P Global Ratings up until this week. 

This comes after the collapse of SVB Financial, which was rated “investment grade” by both S&P and Moody’s until the day it collapsed. 

What are rating agencies rating worth? Asking for a friend…


(Chart from

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