https://sputnikglobe.com/20230429/first-republic-bank-may-soon-become-third-us-lender-to-come-under-federal-control-1109936615.html
First Republic Bank May Soon Become Third US Lender to Come Under Federal Control
First Republic Bank May Soon Become Third US Lender to Come Under Federal Control
Sputnik International
San Francisco-based First Republic may be the third US lender to come under federal control since the country’s banking crisis erupted in March as its rescue by other banks wasn’t working.
2023-04-29T01:52+0000
2023-04-29T01:52+0000
2023-04-29T01:49+0000
economy
silicon valley bank
jpmorgan chase
silicon valley bank collapse
us federal deposit insurance corporation
signature bank
banking system
financial crisis
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Silicon Valley Bank and Signature Bank were the first two lenders to collapse last month after a customer deposit run, triggered by concerns about the solvency of the two institutions. First Republic was also hit by deposit runs but managed to stay afloat with a capital infusion of some $30 billion from the nation’s largest banks, including JPMorgan Chase. However, unless more capital is raised, First Republic might have to go under the receivership of the Federal Deposit Insurance Corporation, or FDIC, which has also assumed control of Silicon Valley and Signature, media reports said. US media has reported that officials from the FDIC, Treasury Department and Federal Reserve were coordinating meetings with other banks to broker a rescue plan for First Republic. CNBC reported that First Republic’s advisors were preparing to pitch larger banks on a plan that would let the lender sell bonds and other assets at an above-market rate and then raise equity. The sales would result in a loss for the banks that buy the bonds but could be cheaper long-term than letting the bank fail and get seized by regulators. Shares of First Republic tumbled more than 40% on Friday on the news, with trading in the stock halted several times owing to undue volatility. The shares trade at just under $3.75 compared with a December 31 close of almost $122.
https://sputnikglobe.com/20230427/first-republic-bank-going-down-in-flames-hints-at-further-trouble-1109895599.html
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silicon valley bank collapse, first republic bank, us lender, federal deposit insurance corporation, fdic, banking crisis
silicon valley bank collapse, first republic bank, us lender, federal deposit insurance corporation, fdic, banking crisis
First Republic Bank May Soon Become Third US Lender to Come Under Federal Control
WASHINGTON (Sputnik) - San Francisco-based First Republic could be the third US lender to come under federal control since the country’s banking crisis erupted in March as its rescue by other banks wasn’t working, media reports said Friday.
Silicon Valley Bank and Signature Bank were the first two lenders to collapse last month after a customer deposit run, triggered by concerns about the solvency of the two institutions. First Republic was also hit by deposit runs but managed to stay afloat with a capital infusion of some $30 billion from the nation’s largest banks, including JPMorgan Chase.
However, unless more capital is raised, First Republic might have to go under the receivership of the Federal Deposit Insurance Corporation, or FDIC, which has also assumed control of Silicon Valley and Signature, media reports said.
US media has reported that officials from the FDIC, Treasury Department and Federal Reserve were coordinating meetings with other banks to broker a rescue plan for First Republic.
CNBC reported that First Republic’s advisors were preparing to pitch larger banks on a plan that would let the lender sell bonds and other assets at an above-market rate and then raise equity. The sales would result in a loss for the banks that buy the bonds but could be cheaper long-term than letting the bank fail and get seized by regulators.
Shares of First Republic tumbled more than 40% on Friday on the news, with trading in the stock halted several times owing to undue volatility. The shares trade at just under $3.75 compared with a December 31 close of almost $122.
