I’m a new trader. I also used to work at First Republic Bank for about a year in 2021. So, when the stock tanked in March 2023 I immediately bought 230 shares in the $20/share range. I’m about to lose it all. Here’s the story.
In 2021 I took a job as an instructional designer at First Republic Bank. I’d never worked at a bank before, but as a former real estate agent, I thought it would be a good opportunity.
What I learned about banking wasn’t particularly interesting, but what really got me excited was being around many smart, very professional people who loved that particular bank and worked very hard for that bank to ensure the success of the bank and ultimately the satisfaction of the bank’s customers.
I worked in the lending side of the house, mostly behind the scenes. So I was primarily working with folks who supported the relationship managers, loan specialists, and others who actually worked with clients. I never worked with clients directly.
However, I did work in the corporate office (on the days we were required to actually go in). Since the whole pandemic thing was still large in everyone’s mind, we mostly still worked from home, although the bank was trying to change that, which didn’t really suit me long term.
The corporate office in downtown San Francisco is beautiful and I took pleasure in taking my one-hour commute on the BART to that office. I remember those days fondly when I would dress in my suit, ride my bike to the BART, take the train, see the trash piling up and the sprawling homeless encampments in Oakland along the way, pass warily under the bay waters, and finally get off at the Embarcadero stop, exit the station, and walk the two blocks to the bank.
Everyone going in and out of the bank was dressed well and most people were friendly. I would put my bike in the basement bike area, go into the cafeteria back on the first floor and grab some free breakfast and coffee, and go to my assigned cubicle on one of the higher floors. Of course having to use my various key cards to get up the elevator and into any of the offices, for security purposes.
They were giving out free food and beverages during that time to entice people to return to the office, and it was a pleasant perk. Lunch was also free.
The bank regularly gave out cool schwag to employees such as beach towels, cups, fancy candles, and more. I have two hardcover First Republic Bank history books, very nicely done. I have two First Republic backpacks, sunblock, a towel, and more.
I’m unvaccinated against Covid. First Republic instituted a policy that required workers to either show proof of vaccination to attend the office (which was mandatory) or take a weekly Covid test. I did not care for this policy. However, I opted for the latter and had to submit myself to getting tested for 15 minutes every week when I went into the office. The test was gross. It required me to gather saliva in my mouth and then spit it into a receptacle. It was messy and usually took about 15 minutes to gather enough drool to fill the vial. I felt anger when I had to do this because, to me, my employer has no right to require me to do something regarding my health. Nonetheless, I kept going.
I also felt ostracized, because the teams would have after-work meetings at places that required proof of vaccinations. Even the cafeteria started requiring proof, which took away some of the glamour of going to work. I could still go in and get food, but I couldn’t sit with the others. I had to go back to my desk and eat. It was very unfair.
I asked for a raise when I was there (twice). I was denied both times. I asked to be allowed to work remotely full-time since I didn’t want to be vaccinated (an unstated reason) and also because I wanted to upgrade my living conditions and couldn’t. I had been living in a condo surrounded by drug addicts because my neighbor was a meth dealer. I say I “couldn’t” because I owned my condo and in order to sell it, I needed to find another place to move into. But the bay area is incredibly expensive and only other suspect condos were affordable to me. Since they wouldn’t give me a raise, my only option I felt, was to move out of the bay area.
So I took another remote job, quit, and moved away.
Overall, I enjoyed my time at First Republic despite the Covid stuff. Like I said before, the professionalism and smarts of the people I was working with were really top-notch – the best I’d ever experienced. I learned a lot from my brief experience at the bank and given how dedicated everyone was I had a hard time believing the bank would ever go out of business.
As part of the compensation at the bank we were able to purchase shares at a discounted price. Some people I worked with had 20 years or more of bank shares saved up. I only accumulated about 10 shares the entire time I was there because they were expensive then – around $200/share if my memory serves. It was pre-tax but I needed my money for other things.
When I quit I sold all my shares. The price of those shares would never go up after that so I’m glad I did.
I also had built up a small 401(k) at First Republic, worth around $6500. I kept that and eventually transferred it into another 401(k) at a later employer.
Now, back to the present. When I saw what happened with Silicon Valley Bank I thought that can’t be the same thing as First Republic, so when their shares tanked I picked up 230 of them at a cheap price. They day they tanked, I was very nervous – I basically spent the entire retirement I had saved from First Republic on their shares. But then the price went back up to $40/share. Being new to trading I didn’t realize then I should have sold it when I was up over $1000 in profit in one day. I was giddy, but assumed the stock would recover more, because previously the price had been around $140/share. How naive I was.
The stock then tanked again down to around $12/share where it hovered for nearly a month, giving me occasional bad dreams, and the need to get up in the middle of the night, and wonder and worry. Moreover, I would constantly read news about the bank and watch numerous youtube videos on predictions about the stock. I especially liked the videos that seemed inclined to think – like me – that the bank would recover since the other large bank had put so much capital into it. I understand now this was wishful thinking.
Today it was announced that JP Morgan was buying First Republic for a paltry sum. I will lose all my invested shares and money. I wonder what will happen to my former colleagues. Did they lose all their shares? Will they still have jobs? It’s a sad day for the bank and now all my schwag too is a relic of the past. I’m left with failure in my stock bet, but what I hope is a valuable learning experience in trading.