US Government Scrambling to Find Solution to Rescue First Republic Bank
U.S. regulators asked large banks to submit their takeover bids for First Republic Bank (NYSE: FRC) over the weekend, in an effort to rescue the troubled bank.
The Federal Deposit Insurance Corp. (FDIC) reportedly held an auction, asking multiple banks to solicit bids for FRC before an afternoon deadline on April 30. As of press time, no announcement had been made.
First Republic released a statement on April 28 stating that the bank is in talks with multiple parties regarding its strategic options, while continuing to serve its clients.
Over the weekend, media reported anonymous sources as saying that about six banks competed to acquire all of FRC’s deposits, a large portion of its assets, and some of its liabilities. Citizens Financial Group Inc., PNC Financial Services Group, US Bancorp, and JPMorgan Chase were among the bidders in an auction run by the FDIC….