FRC - Urgent rescue talks for First Republic: Will U.S. government get involved?
2023-04-28 05:26:19 ET
The U.S. government is "coordinating urgent talks" to save First Republic Bank ( NYSE: FRC ) as "private-sector efforts led by the bank's advisers have yet to reach a deal." That's according to Reuters, which said the FDIC, Treasury Department and Federal Reserve are involved , and seems to echo similar comments made by White House Press Secretary Karine Jean-Pierre.
"We're going to monitor the situation and know the tools that we have in front of us to use," she said during her latest press briefing. "We have taken decisive and forceful actions in the past and I could assure you that you'll see that again from this administration."
While the efforts may help bring more parties such as banks and private equity firms to the negotiating table, it's still unclear whether the U.S. government will ultimately participate in the rescue. On Monday, First Republic ( FRC ) revealed that deposit outflows totaled more than $100B in Q1, and put the spotlight on Wall Street institutions that deposited $30B at the bank on March 16 to stave off a regional banking crisis.
Shares of First Republic ( FRC ) are up nearly 10% to $6.19 in premarket trading, after climbing 9% on Thursday, but the stock is still off 58% for the week.
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Urgent rescue talks for First Republic: Will U.S. government get involved?