The goal is that 'somebody else buys them and hopefully opens them up as soon as possible so there’s not turmoil in the markets,' a person familiar with the matter said.
Representatives for JPMorgan, Bank of America, and PNC declined to comment.suggested that the FDIC would likely place First Republic into receivership.The FDIC sometimes operates afor banks it deems are tipping toward failure. And sometimes such a process can take place well ahead of an actual seizure, by as much as 60 to 90 days. And sometimes a failure doesn't happen even after bidding occurs.
First Republic was founded in 1985 by Jim Herbert, and over the decades expanded rapidly as it attracted wealthy customers clustered on either coast by offering them large single-family mortgages at ultra-low rates along with personalized service. The hikes lowered the value of the interest-rate sensitive assets on its balance sheet and helped create billions in unrealized losses, a hole that ultimately attracted the attention of investors and depositors following the fall of Silicon Valley Bank.The bank also had lots of uninsured depositors, making them a greater flight risk during the chaos that unfolded in March.
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