The turmoil at First Republic is sparking speculation that federal regulators could step in with a rescue package to shore up its shaky finances.
Biden officials are reportedly growing increasingly concerned that the bank is running out of time to reassure depositors and investors, FT is reporting., which recently led an effort among other lenders to prop up First Republic to the tune of $30 billion in an emergency investment, to step in with a rescue plan, according to FT.
Another option is for the Federal Deposit Insurance Corporation to take over the bank and offer a government backstop for all deposits — just as it did with Silicon Valley Bank and Signature Bank of New York, FT reported. Biden administration officials are said to be alarmed by First Republic’s inability to shore up its shaky balance sheet. Treasury Secretary Janet Yellen is seen above.One option being discussed is to have the Federal Deposit Insurance Corporation take over the bank and backstop deposits. FDIC chair Martin Gruenberg is seen above.FT cited “a person close to First Republic” as saying that the bank would agree to the government “convening the relevant parties to come up with a solution.
Biden officials at the White House and the Treasury as well as Federal Reserve personnel have been in touch with First Republic. CNBC reported early on Wednesday that First Republic’s advisers have already lined up potential purchasers of new stock in the lender if they can fix the bank’s balance sheet.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
First Republic customers yank $100B in deposits as bank set to slash jobsThe bank also said it now plans to sell off assets and restructure its balance sheet.
Read more »
First Republic bank says deposits tumbled 40% to $104.5 billion in the first quarterThe lender said things have stabilized since last month's banking emergency, but it will still reduce headcount by 20% to 25% in the second quarter.
Read more »
What First Republic's results mean for the regional bank trade, according to Wall StreetFirst Republic saw a larger deposit decline than many of its rivals during the first quarter.
Read more »
First Republic beats profit target but stock drops as deposits fall by 36%First Republic Bank stock fell 7% in after-hours trades on Monday, despite stronger-than-expected first-quarter profit from the bank, as its deposits fell by...
Read more »
First Republic Bank Stock Price Today | NYSE FRC Live Ticker - Investing.comView today's First Republic Bank stock price and latest FRC news and analysis. Create real-time notifications to follow any changes in the live stock price.
Read more »
Treasury yields lower after First Republic stock-price slide10-year Treasury yields slipped to a seven-session low after news on Monday renewed concerns about an economic slowdown and stresses in the banking sector.
Read more »