Regulators Close In on First Republic

Federal takeover and sale could be completed over the weekend
By Bob Cronin,  Newser Staff
Posted Apr 29, 2023 5:15 PM CDT
Regulators Close In on First Republic
A pedestrian walks past a First Republic Bank location in San Francisco, Wednesday, April 26, 2023.   (AP Photo/Jeff Chiu)

Federal regulators were working through the weekend to take over and sell First Republic Bank, an effort to bring an end to the regional banking crisis that began seven weeks ago with the collapse of Silicon Valley Bank. The goal is to have the operation, which is being managed by the Federal Deposit Insurance Corporation, wrapped up before the financial markets open on Monday, the New York Times reports. First Republic has said its customers have pulled out more than half of its deposits, and potential buyers fear they'd be taking on billions in losses.

JPMorgan Chase, PNC Financial Services, and Bank of America reportedly are talking with the FDIC about Republic. The current plan calls for the FDIC to put First Republic in receivership briefly before selling it, per the Washington Post. The regulators have been seeking bids this week. At the moment, the highest bid is from JPMorgan Chase, which led a group of 11 banks that deposited $30 billion in First Republic last month in a show of faith. First Republic's shareholders would lose their investments under the federal government's plan. (More FDIC stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.