Sources familiar with the matter have revealed that PNC Financial Services Group, JPMorgan Chase, and Citizens Financial Group were among the banks that submitted their final bids for First Republic Bank in the auction held by U.S. regulators. It was anticipated that the Federal Deposit Insurance Corp (FDIC) would announce a deal on Sunday night and simultaneously declare the seizure of the lender. However, no announcement was available Monday morning European time.
In Mid-March, eleven of the biggest U.S. banks announced a $30 billion rescue package for First Republic to prevent it from becoming the third to fail and head off a broader banking crisis. First Republic reported total assets of $233 billion as of March 31. But that is unlikely to be enough to save the bank. At the end of last year, the Federal Reserve ranked First Republic 14th in size among U.S. commercial banks.
Since the collapse of the crypto exchange FTX last year, the U.S. banking industry has been in turmoil.
Over the weekend, regulators worked to address the troubles faced by First Republic, seeking a solution before Monday’s opening of the U.S. stock markets. First Republic, based in San Francisco, has struggled since the collapse of Silicon Valley Bank and Signature Bank in March. The bank’s stock has plummeted, trading at just $3.51 on Friday, compared to roughly $170 a year ago.
