Federal regulators are scrambling to find a buyer for First Republic Bank as the banking firm’s shares proceed to fall, according to the report.
The Federal Deposit Insurance Corporation has approached several powerful banks – including JPMorgan Chase & Co., PNC Financial Services Group Inc., US Bancorp and Bank of America Corp. – to submit final bids for First Republic Bank by Sunday after initial evaluation. interest at the starting of the week, sources told Bloomberg.
The FDIC contacted the banking corporations on Thursday, a day after First Republic Bank shares fell 30%.
The bank saw an initial 50% drop in its share price on Tuesday after the San Francisco-based lender revealed that customers withdrew $100 billion price of deposits – 40% of the company’s value – in the first three months of the 12 months.
A large nose-dive prompted First Republic Bank to seek federal aid and place it in receivership.
After concluding that the lender’s position had deteriorated beyond any likelihood of private sector rescue, the FDIC reportedly turned to other large public firms for help.
People aware of the matter told Bloomberg that the regulator offered each bank a proposed price and estimated cost to the agency’s deposit guarantee fund.
![bank of the first republic](https://nypost.com/wp-content/uploads/sites/2/2023/04/first-republic-bank.jpg?1682798860&w=1024&1682798860)
First Republic wants to sell its assets price between $50 billion and $100 billion, including mortgages and securities.
Since then, the FDIC has limited their selection to a minimum of half a dozen banks, including Residents Financial Group Inc.
The deal is anticipated to be announced Sunday evening ahead of the opening of Asian markets.
The regulator can also be likely to announce that it has acquired First Republic Bank.
If the lender goes into receivership, it can be the third U.S. bank to fail since March.
If nobody takes over, the FDIC can take over the bank and offer government collateral for all deposits, similar to Silicon Valley Bank and Recent York’s Signature Bank.
Bank of America, JPMorgan, PNC and Residents Bank declined to comment.
US Bancorp and First Republic Bank didn’t immediately respond to The Post’s request for comment.
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