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.
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.
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.
First Republic shares plunged last weekend after the company admitted that customers withdrew $100bn of deposits in March.
In March, 11 US banks stepped forward to pump $30bln in First Republic to try to stabilize the business.
First Republic's value in the market had fallen to $557 million by Friday which was $40 billion in November 2021.
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.