D-Day looms for First Republic as US officials set bid deadline
Future of First Republic hangs in balance after US officials set deadline for bidders to come up with rescue plan to save troubled lender
The future of First Republic hangs in the balance after US officials set a deadline of today for bidders to come up with a rescue plan to save the troubled lender.
Some of Wall Street’s biggest banks, including JP Morgan, are said to be lining up a bid for the Californian bank, which until recently was America’s 14th largest lender.
Uncertain future: If no deal is done before stock markets open, First Republic is likely to be put into receivership
But if no deal is done before stock markets open tomorrow, First Republic is likely to be put into receivership under the US Federal Deposit Insurance Corporation (FDIC), an industry-funded lifeboat.
The turmoil followed news that depositors had pulled $100 billion (£80 billion) from First Republic in three months.
A £24 billion lifeline – thrown by a group of Wall Street banks – failed to calm nerves.
Investors have been on edge ever since the failure 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 during the financial crisis of 2008. Lloyds is set to post strong results this week.
Analysts expect pre-tax profits of almost £2 billion in the first quarter.