First Republic’s future hangs in the balance after US officials set a deadline for bidders to come up with a bailout plan to bail out the troubled lender
The future of First Republic hangs in the balance after US officials today set a deadline for bidders to come up with a bailout plan to save the troubled lender.
Some of Wall Street’s biggest banks, including JP Morgan, would make bids for the California bank, which until recently was America’s 14th largest lender.
Uncertain Future: Failing a deal before the stock markets open, First Republic likely to go into receivership
But if a deal isn’t struck before the markets open tomorrow, First Republic will likely go into receivership under the US Federal Deposit Insurance Corporation (FDIC), an industry-funded lifeboat.
The turmoil followed news that savers had taken $100bn (£80bn) out of First Republic in three months.
A £24bn lifeline – thrown by a group of Wall Street banks – failed to calm nerves.
Investors have been tense since the bankruptcy of two other US regional banks, SVB and Signature, and the rescue of Credit Suisse by fellow Swiss lender UBS.
Analysts say UK banks are in much stronger shape now than they were during the 2008 financial crisis. Lloyds is set to post strong results this week.
Analysts expect pre-tax profit of almost £2 billion in the first quarter.