HomeEconomyU.S. officials lead emergency rescue talks for First Republic - sources Economy U.S. officials lead emergency rescue talks for First Republic – sources By hossam a April 30, 2023 0 53 views Share FacebookTwitterPinterestWhatsApp SBNY -.% add to Watchlist/Remove from Watchlist Add to watch list Add location Location successfully added to: Please name your portfolio type: purchase Sell date: quantity: price Point value: Leverage: 1:1 1: 1: 1: 1: 1: 251: 10 1:30 1 : 25 Committee: Create New Watchlist Create 400 Create a new holding portfolio Add Create 1000 + add another position to close 100 FRC -.% 500 Add to/Remove from Watchlist Add to watch list Add location Location added successfully: Please name your portfolio type: purchase Sell date: quantity: price point value: Leverage: 1:1 1: 1: 1: 1:25 1: 1: 24 1: 25 1: 50 Committee: 20751 Create New Watchlist Create 207511000 400 Create a new holding portfolio Add Create 17124 + add another position to close By Nupur Anand, Andrea Shalal and Greg Roumeliotis NEW YORK (Reuters) – U.S. officials are urgently coordinating talks on rescue 5252 First Republic Bank (NYSE: 100FRC ) As the private sector effort leads, the bank’s advisers have yet to reach an agreement, according to three sources familiar with the situation. Government agencies such as the Federal Reserve have begun talking to financial firms in recent days, the FDIC, Treasury and sources said. Hold meetings to work out solutions for struggling banks. While the government has been in contact with the First Republic and its advisers for weeks, its new involvement helps Bringing more parties to the table, including banks and private equity firms. It is unclear whether the US government is considering involvement in a private sector rescue of the First Republic. However, the government’s involvement has emboldened First Republic executives to scramble for a deal to avoid a takeover by U.S. regulators, one of the sources said. First Republic became the epicenter of the regional U.S. banking crisis in March as the wealthy clients it courted to power its skyrocketing growth began withdrawing deposits and Let the banks falter. U.S. officials see a private sector deal as preferable to First Republic falling into FDIC receivership, two sources said. but many of the options proposed – including selling assets or creating a “bad bank” to insulate its underwater assets – have so far failed to yield The source added. Any settlement would have to cover losses incurred by First Republic or the bank’s potential acquirer in doing the deal. The losses will stem from First Republic’s loan book and fixed-income portfolio, where low-yielding assets will be marked down in response to rising interest rates. The deal structure most likely to save First Republic is a special purpose vehicle that would divest some of the lender’s assets for other banks to buy, the two A source familiar with the discussions said. banks have been reluctant to buy the assets at a discount to the market, and the First Republic hopes that U.S. officials will be able to convince them to take part, one of the sources said. The agreement provides some kind of government support. CNBC quoted sources on Friday as saying that government talks are now focused on preparing the First Republic for FDIC takeover, and that this outcome is possible. of. In receivership, the FDIC funds will bear any losses resulting from the receivership of First Republic’s subsea assets. The FDIC will recover these losses from all banks that contributed to its insurance program without affecting U.S. taxpayers. The sources requested anonymity because the discussions are confidential. “We are discussing our strategic options with various parties while continuing to serve our clients,” First Republic said in a statement . The Treasury, Federal Reserve and FDIC declined to comment. First Republic stock drops % for $4. on Friday. Since , Wall Street banks have been working hard to provide First Republic looking for a solution The largest bank deposit in the United States $ March bank deposit to contain the regional The banking crisis and 200100 Signature Library(OTC: 200New York Stock Exchange). Zhou’s talk of reaching a deal became more urgent as its outflow of deposits exceeded $30 billion in the first quarter. While the bank said its deposits had stabilized, it revealed it was losing money as it had to replace withdrawn deposits with interest-earning funds from the Federal Reserve. First Republic is considering a major hit, or even a total loss for shareholders, as part of options to block US regulators from taking it over, one of the sources said. say. First Republic stock has been lost 24 as a percentage of their value since the start of the regional banking crisis on March 8. 95 Share FacebookTwitterPinterestWhatsApp Previous articleCinemaCon Highlights: Ryan Gosling's 'Barbie' Ken-ergy, 'Evil' Wow and 'The Flash' FrenzyNext articleRihanna Already Has a Met Gala Theme—Two Days Early hossam a RELATED ARTICLES Economy UK posted wages hit two-year high in April – Adzuna May 31, 2023 Economy UK's inflation problem worse than U.S. or euro zone – BoE's Mann May 31, 2023 Economy Boris Johnson hands COVID-era WhatsApps to UK government amid inquiry row May 31, 2023 LEAVE A REPLY Cancel reply Comment: Please enter your comment! Name:* Please enter your name here Email:* You have entered an incorrect email address! Please enter your email address here Website: Save my name, email, and website in this browser for the next time I comment. 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