US regulators trying to sell First Republic Bank: reports
U.S. regulators are reportedly trying to sell First Republic Bank by Sunday as the financial institution may become the third major U.S. bank to collapse since March.
The Federal Deposit Insurance Corp. is running the auction process for First Republic with half a dozen banks, including JPMorgan Chase & Co, PNC Financial Services Group and Citizens Financial Group Inc, according to multiple reports.
If a deal is reached, it is expected to be announced Sunday evening before the opening of Asian markets, and the regulator is likely to say at that time that it has seized control of the bank, three sources familiar with the matter told Reuters.
Shares of First Republic plunged from $122.50 a share on March 1 to $3.51 on Friday.
After the failures of Silicon Valley Bank and Signature Bank in early March, First Republic received $30 billion in uninsured deposits from some of the nation’s largest banks to prevent it from collapsing. Shares of First Republic remained steady around $13 to $14 from mid-March until they fell significantly last week after the bank admitted that customers withdrew about $100 billion last month.
Madeleine Hubbard is an international correspondent for Just the News. Follow her on Twitter or Instagram.