Big banks, including JPMorgan Chase & Co and Purcell, submitted bids for First Republic Bank to the FDIC, according to people familiar with the matter. The FDIC is preparing to take over and sell the struggling lender.
Big banks, including JPMorgan Chase & Co. ( JPM ) and PNC Financial Services Group Inc. , have sent to the Federal Deposit Insurance Corp. , according to people familiar with the matter. US, referred to as FDIC) submitted a bid for First Republic Bank. The FDIC is preparing to take over and sell the struggling lender.
The winning bidder could be announced later on Sunday, these people said.
The San Francisco-based bank has been teetering for weeks after Bay Area lender Silicon Valley Bank collapsed on March 10. The collapse of Silicon Valley Bank spurred panicked First Republic Bank customers to withdraw about $100 billion in deposits in a matter of days.
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Big banks, including JPMorgan Chase & Co. ( JPM ) and PNC Financial Services Group Inc. , have sent to the Federal Deposit Insurance Corp. , according to people familiar with the matter. US, referred to as FDIC) submitted a bid for First Republic Bank. The FDIC is preparing to take over and sell the struggling lender.
The winning bidder could be announced later on Sunday, these people said.
The San Francisco-based bank has been teetering for weeks after Bay Area lender Silicon Valley Bank collapsed on March 10. The collapse of Silicon Valley Bank spurred panicked First Republic Bank customers to withdraw about $100 billion in deposits in a matter of days.
Since then, the bank’s shares have fallen about 97%.
A group of the largest U.S. banks, including JPMorgan Chase & Co. and Prosperity, tried to back First Republic with $30 billion in deposits, but it wasn’t enough. First Republic considered a sale or an outside capital injection and hired investment bankers to advise on its options, The Wall Street Journal reported. It also laid out a plan to sell some of its loans or securities, or both, at above-market value.
The takeover and sale of the First Republic, an institution that until recently was the envy of the financial world, would end its astonishingly sudden collapse. The bank had about $233 billion in assets at the end of the first quarter, and if it failed, it would be the second-largest bank failure in U.S. history.
A spokesman for First Republic Bank declined to comment. A spokesman for the FDIC declined to comment.