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FDIC asks banks for final First Republic bids- media reports

Published 04/29/2023, 03:09 AM
Updated 04/29/2023, 02:00 PM
© Reuters. People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. REUTERS/Loren Elliott
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(Reuters) -The U.S. Federal Deposit Insurance Corp has asked banks including JPMorgan Chase & Co (NYSE:JPM) and PNC Financial Services Group (NYSE:PNC) to submit final bids for First Republic Bank (NYSE:FRC) by Sunday after gauging their initial interest earlier in the week, Bloomberg News reported.

The banking regulator reached out to banks late on Thursday seeking indications of interest, including a proposed price and estimated cost to the agency's deposit insurance fund, the report said.

Bank of America (NYSE:BAC) is among several other institutions weighing a potential bid for First Republic, CNBC reported on Saturday, citing people with knowledge of the matter.

Based on those submissions on Friday, the FDIC invited at least two companies to the next step in the bidding, the Bloomberg report added, citing people familiar with the matter.

The FDIC said in an email: "We would not comment on or confirm whether we are bidding an open institution."

PNC Financial declined to comment on the Bloomberg report. JPMorgan and Bank of America did not immediately respond to a voicemail and email seeking comment.

The FDIC is preparing to place First Republic under receivership imminently, after the regulator decided the regional lender's position had deteriorated and there was not time to pursue a rescue through the private sector.

If the San Francisco-based lender falls into receivership, it would be the third U.S. bank to collapse since March, following the collapse of Silicon Valley Bank and Signature Bank (OTC:SBNY).

Latest comments

YELLEN the Fellon The Biden pick for treasury secretary. Just came out and said the banks are fine. She was lying then and will lie again- Losers .
friday bull trip???
K
I bought $1000 of stock when it was $4, what will happen to me? will I lose everything?
Jason xx is just trying to spin things for his parties failed policy. inflation is 100% Biden and now we deal with the consequences
Lol my party... Ok
No, your parties.
Bonds are now in a high-risk zone. Who will buy and hold bonds tomorrow if they create a risk of bankruptcy. Bonds are like an infection now
Its not good thats why rates have to and will be cut
Poor bank management waa the problem not interest rate hikes. Any anyone who has deposits at a bank greater than the deposit insurance limits is not financially savvy and deserve to loose their money.
Easy to point the finger when rates clearly are the cause yiu just dont want to accept it because it doesn't fit your narrative. You would be begging for a bail out if it was you
but market is literally pumping like as an hell US30 nasdaq100 and S&P500 is just got a crazy pump in  friday such a bull trap is going on monday and tuesday could be a decision maker for a market
I really do not understand the reason for the pump but we know there's going to be a serious crash next week
How about everyone beating Earnings. Fed about to pause at minimum and being 1 month away from 3% PCE. Cowards always find something to fear. There is always a crash coming next week as long as i have been investing. Every 30 point spx drop is the start of the world's largest crash according to you people. Market is way off highs so idk why you are surprised by recovery
All the Fed had to do was raise rates gradually and they could have been doing 25bps the rest of the year. But No they had to do it all at once and crush the smaller banks t like im be ciles
 Agreed. Bonds are open market trades, they could off load their holding and shift to whatever or hold cash, or even short bonds. the issue is they piled into more bonds probably thinking there is no way fed will continue to hike. it's just bad bets.
Please its so easy to want to hold everyone elses feet to the fire. I bet you both have been bailed out plenty of times. Fed is to blame
Hilarious they say the fed told everyone what thry would do when they change thier minfs every month. 75 bpb off table transitory inflation no rate hikes in 2022. The list goes on and on and on lmao
Fed now taking tons of heat for not anticipating intrest rate risk before going on thier wreckless hiking campaign. No way they raise rates more with FRC failing. They will be cutting this summer
unlikely, it has to be inflation depended. bank failing doesn't mean much because this is a bank run crisis, net cash flow between all the banks are 0 if we exclude normal activities. therefore, banks failing and being bought out by other banks as whole or piece meal do not impact the overall state of the economy in the short run. it may discourage risky borrowing which banks shouldn't be doing much anyway. lol. if a bank think fed has to hold or cut, then buy into bonds, then it may set itself up as 3rd bank-run
Don't worry about the banking system... nothing is under control... lol
Rate hikes are over this could turn into contagion. Fed may even cut to fix their mess since inflation is falling so hsrd
I know the fed like pce but unfortunately the vast majority of the public don't know what it is and know cpi. no economist with any sense in calling for rates cuts. cutting rates now would definitely fuel future inflation force the dollar down massively and most like cause an strong rally in commodities especially oil, and no doubt there would be public backlash when they see inflation take off again. Cutting rates would also fuel concern in the stock market as non is expecting it and people would fear the fed see economic unstability which others can't yet see. So really the last thing anyone wants is a rate cut this early
No nobody know cpi either and its not what the fed uses to measure inflation
Lol 1 bank. This is the 4th
I think opposite that's taking o. a lot of depth. could initially push stock down. the bears wear trying loke hell to push it down at close but market push high in to close if the market goes down I would that big gap gets fill before it goes higher. at least that's my play
bull trap
bull trap
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