JPMorgan and Morgan Stanley are reportedly discussing a potential deal with First Republic Bank. The Wall Street Journal reports it, adding that the two banking giants would be ready to support the Californian institution at risk of bankruptcy with a considerable injection of capital.
The option of a total takeover of the bank is also on the table, although it seems an unlikely solution according to the Wall Street Journal.
After the defaults of SVB and Signature, First Republic is the main suspect among the banks that could file for bankruptcy. Shares of the Californian bank trimmed daily loss on rumors but remain down 26% on Wall Street, plunging nearly 80 percentage points in the past week on the heels of the earthquake that rocked the US financial sector .