WAL - FDIC Federal Reserve reportedly weighing backstop fund if more banks fail

2023-03-12 10:18:50 ET

• The Federal Deposit Insurance Corp. (FDIC) and the Federal Reserve are considering forming a fund that would allow regulators to backstop deposits at banks should more regulated financial institutions run into trouble after Silicon Valley Bank ( SIVB ) collapsed on Friday , Bloomberg reported, citing people familiar with the matter.
• The regulators have discussed with banking executives a special vehicle with the aim to reassure depositors and help to keep panic from spreading.
• In separate talks, the FDIC asked officials from multiple small- and mid-sized lenders, including First Republic Bank ( NYSE: FRC ), about their financial situations, Bloomberg reported , citing people with knowledge of the situation.
• On Friday, First Republic ( FRC ) stock fell as much as 52% amid fear that Silicon Valley Bank's woes would spread to other banks in the tech-focused region.
• At various times on Friday, shares in First Republic ( FRC ), Western Alliance Bancorporation ( NYSE: WAL ), PacWest Bancorp ( NASDAQ: PACW ), and Signature Bank ( NASDAQ: SBNY ) had been halted.
• Earlier, Silicon Valley Bank CEO sold $3.6B of stock two weeks before bank failed

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