First Republic Bank Reportedly On Verge Of Collapse

[Right_in_Virginia]

First Republic Bank Reportedly On Verge Of Collapse
Forbes, Apr 28, 2023

Federal regulators are preparing to seize control of San Francisco-based First Republic Bank, according to multiple reports, as the institution appears on track for a possible collapse in one of the biggest banking busts in American history.

KEY FACTS

Reuters first reported Friday afternoon that the Federal Deposit Insurance Corporation is expected to swiftly take the bank under receivership, following a stock crash.

The share price for First Republic’s stock declined some 43% on Friday alone to close at $3.51 following deep selloffs earlier this week—the stock is down around 98% from its 52-week high.

The FDIC has started reaching out for bids from potential buyers if it takes the bank under receivership, according to CNBC, which reported receivership is likely but there is still hope for an outcome that doesn’t require the federal government seizing the bank.


More:
https://www.forbes.com/sites/nicholasreimann/2023/04/28/first-republic-bank-reportedly-on-verge-of-collapse/?sh=549feefe4de8

[Right_in_Virginia]

U.S. regulator set to take over First Republic
Reuters, Apr 28, 2023 4:33 PM EDT

NEW YORK, April 28 (Reuters) - The U.S. Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic under receivership imminently, a person familiar with the matter said on Friday.

The U.S. banking regulator has decided that the troubled regional lender's position has deteriorated and there is no more time to pursue a rescue through the private sector, the source said, requesting anonymity because the matter is confidential.

First Republic and FDIC representatives did not immediately respond to requests for comment.

Reporting by Greg Roumeliotis in New York

https://www.reuters.com/business/finance/us-regulator-set-take-over-first-republic-source-2023-04-28/

[Smokin Joe]

Welcome to the New Green Depression.

[Kamaji]

FDIC races to find buyer for collapsing First Republic Bank: report

By Katherine Donlevy   
April 29, 2023

Federal regulators are scrambling to find a buyer for First Republic Bank as the banking company’s stock continue to tumble, according to a report.

The Federal Deposit Insurance Corp. has asked several high-powered banks — including JPMorgan Chase & Co., PNC Financial Services Group Inc., US Bancorp and Bank of America Corp. — to submit final bids for First Republic Bank by Sunday after gauging initial interest earlier in the week, sources told Bloomberg.

The FDIC reached out to the banking corporations Thursday, one day after Shares of First Republic Bank plummeted 30%.

The bank suffered an initial 50% stock price drop Tuesday after the San Francisco-based lender revealed that customers withdrew $100 billion worth of deposits — 40% of the company — in the first three months of the year.

The massive nose dive pushed First Republic Bank to seek out federal assistance and be placed under receivership.

*  *  *

Source:  https://nypost.com/2023/04/29/fdic-races-to-find-buyer-for-collapsing-first-republic-bank/