STOCK MARKET UPDATES: GM, Verizon, McDonald’s earnings, First Republic shares tumble

People are seen inside the First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike Segar

First Republic Bank has been sued by shareholders who accused the beleaguered U.S. regional bank of concealing how rising interest rates threatened its business model by prompting an exodus of deposits.

The lawsuit filed late Monday in San Francisco federal court accused First Republic and its auditor KPMG of misrepresenting the strength of the bank's balance sheet and liquidity.

It was filed about three hours after First Republic startled investors by disclosing it had lost $102 billion, or 58%, of its deposits in the first quarter, excluding a temporary $30 billion deposit infusion from the nation's biggest banks. First Republic also said it would cut up to 25% of its workforce.

The deposit outflows were sparked by last month's collapse of SVB Financial Group's Silicon Valley Bank, which also catered to customers in start-ups and had many accounts with uninsured deposits, and Signature Bank.

MARKETS

First Republic, KPMG sued for concealing bank's risks

The lawsuit filed late Monday in San Francisco federal court accused First Republic and its auditor KPMG of misrepresenting the strength of the bank's balance sheet and liquidity.

The company logo and trading information for 3M is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 29, 2022. REUTERS/Brendan McDermid

3M Co will cut about 6,000 positions globally in a second round of lay-offs this year, as the U.S. industrial conglomerate looks to rein in costs amid waning demand for consumer electronics.

The diversified manufacturer said on Tuesday it will shift its focus to high-growth businesses, including automotive electrification and home improvement, and prioritize emerging growth areas such as climate technology and next-generation consumer electronics.

The job-cut decision comes as an uncertain economy along with rising interest rates and stubbornly high inflation forces corporate America to get leaner in recent months.

3M, which makes electronic displays for smartphones and tablets, has been struggling with waning demand for consumer electronics as people are cutting back on discretionary spending amid recession worries.

MARKETS

3M to cut 6,000 jobs in second round of layoffs this year

The workforce reductions are in addition to the 2,500 manufacturing jobs the company said it would eliminate in January. 3M had 92,000 employees at the end of 2022.

MARKETS

McDonald’s customers still ‘lovin it’ despite price hikes

McDonald's customers kept at it last quarter despite inflation and higher prices at the fast food giant.

McDonald's shares continued to hover near record levels after the fast-food giant reported a double-digit jump in global sales despite price hikes which helped feed quarterly earnings.

LIFESTYLE

Tiger Woods, Justin Timberlake back new Florida lifestyle development

Professional golfer Tiger Woods and singer Justin Timberlake are part of a group backing the creation of a new lifestyle development in southern Florida.

Tiger Woods and Justin Timberlake are throwing their money behind a new lifestyle development in Wellington Florida that is promising to offer residents more than sunshine.

MARKETS

First Republic shares slide as Q1 report reveals 40% dip in deposits after banking crisis

First Republic Bank released its first-quarter financial results, which revealed a 40% decline in deposits compared to the end of 2022 in the wake of the recent banking crisis.

First Republic shares slid on Tuesday after the bank disclosed a exodus of deposits after the collapse of Silicon Valley Bank. It will also slash up to 25% of its workforce.