News Update


The First Republic undertakes a last-ditch effort to secure a rescue deal.

US regulators are scrambling to find a buyer for First Republic Bank, which may be revealed as soon as Sunday.

According to reports, the Federal Deposit Insurance Corporation has asked six banks to bid on the troubled institution.

First Republic’s stock dropped last week after the company revealed that clients withdrew $100 billion in deposits in March.

At the time, its competitor Silicon Valley Bank had gone bankrupt, raising concerns about a broader banking crisis.

The fall of SVB was quickly followed by the failure of another US institution, Signature Bank.

The Federal Deposit Insurance Corporation (FDIC), a US financial regulator, reportedly solicited offers for First Republic by the end of last week and has been evaluating them over the weekend.

According to Reuters, investment banking behemoth JP Morgan Chase is one of the banks invited to bid on First Republic. Bank of America is said to have been approached as well.

JP Morgan did not respond to a request for comment.

Bank of America and the FDIC have been approached for comment.

Concerns about the global banking industry grew last month, when difficulties at Silicon Valley Bank surfaced.

Over the last year, central banks around the world have sharply raised interest rates in order to slow the rate of price rises, also known as inflation.

It has harmed the values of big portfolios of bonds purchased by banks while interest rates were low, prompting concerns that other corporations will experience similar problems.

At the same time, in Europe, Credit Suisse, the Swiss banking giant that has been mired in its own issues for years, said that it would need to borrow $54 billion from the country’s central bank to shore up its finances.

Credit Suisse was later rescued by long-term rival UBS.


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