FDIC Asked For Final Bids On First Republic Bank

Federal Regulators Set To Seize & Sell First Bank

U.S. regulators asked banks to submit their best and last takeover bids for First Republic. Authorities hope this will end a period where regional lenders have been in uncertainty.

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JPMorgan Chase and PNC would likely bid for the failing lender. The bank would then be placed in receivership, and sold immediately to the winning institution.

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Bank of America decided not to submit a final offer after participating in previous discussions. This information was provided by people who are familiar with the situation.

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First Republic shares plunged last weekend after the company admitted that customers withdrew $100bn of deposits in March.

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In March, 11 US banks stepped forward to pump $30bln in First Republic to try to stabilize the business.

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First Republic's value in the market had fallen to $557 million by Friday which was $40 billion in November 2021.

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First Republic has wealthy clients who are at risk of losing their money if they cannot find a buyer. The FDIC covers deposits up to $250,000 in the US.

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