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FDIC asks banks for final First Republic bids- media reports

Published 04/29/2023, 03:09 AM
Updated 04/29/2023, 02:00 PM
© Reuters. People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. REUTERS/Loren Elliott
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(Reuters) -The U.S. Federal Deposit Insurance Corp has asked banks including JPMorgan Chase & Co (NYSE:JPM) and PNC Financial Services Group (NYSE:PNC) to submit final bids for First Republic Bank (NYSE:FRC) by Sunday after gauging their initial interest earlier in the week, Bloomberg News reported.

The banking regulator reached out to banks late on Thursday seeking indications of interest, including a proposed price and estimated cost to the agency's deposit insurance fund, the report said.

Bank of America (NYSE:BAC) is among several other institutions weighing a potential bid for First Republic, CNBC reported on Saturday, citing people with knowledge of the matter.

Based on those submissions on Friday, the FDIC invited at least two companies to the next step in the bidding, the Bloomberg report added, citing people familiar with the matter.

The FDIC said in an email: "We would not comment on or confirm whether we are bidding an open institution."

PNC Financial declined to comment on the Bloomberg report. JPMorgan and Bank of America did not immediately respond to a voicemail and email seeking comment.

© Reuters. People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. REUTERS/Loren Elliott

The FDIC is preparing to place First Republic under receivership imminently, after the regulator decided the regional lender's position had deteriorated and there was not time to pursue a rescue through the private sector.

If the San Francisco-based lender falls into receivership, it would be the third U.S. bank to collapse since March, following the collapse of Silicon Valley Bank and Signature Bank (OTC:SBNY).

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