First Republic Woe Shows End of Easy Money That Drove California

The worst thing to hit California this week was supposed to be the weather, with drenching rainstorms, flooding and the evacuation of thousands of residents.

Then came the sudden collapse of Silicon Valley Bank, a key lender for California’s almighty tech industry and the second finance company to fail in the state in days.

While US authorities deployed measures on Sunday to boost confidence in the wider banking system, the turmoil continued to engulf shares in other regional banks on Monday. San Francisco-based First Republic Bank sank by 78% and trading in the shares were halted for volatility, as news ...