No price risk. It's both a prop up of the bank and a one-way bet on its continuing existence.
If First Republic goes bankrupt, it's still the same, isn't it?
But if First Republic does not go bankrupt, this approach returns exactly their initial deposit, no more, no less. Whereas it's plenty possible for it to continue to exist but at a reduced equity value.
(Edited out "yes", because sibling comment is correct: if they made an equity investment, it could go to zero very much more easily than a deposit)
Plus interest mind you, but it’s negligible.
No - depositors get priority over creditors and creditors get priority over shareholders. So if it fails, depositors might get 75% or so back, and shareholders zero.