A deal is expected to be announced on Sunday night before Asian markets open, with the regulator likely to say at the same time that it had seized the lender, three of the sources said
Currently, the interested banks are evaluating options to see what they would like to bid for, one of the sources said, adding that it is likely that lenders will bid for all of FRC’s deposits, a sizable chunk of its assets and some of its liabilities.
While markets have since calmed, a deal for First Republic would be closely watched for the amount of support the government has to provide. In trying to find a buyer before closing the bank, the FDIC is turning to some of the largest U.S. lenders. Large banks had been encouraged to bid for FRC’s assets, one of the sources said.
First Republic was founded in 1985 by James “Jim” Herbert, son of a community banker in Ohio. Merrill Lynch acquired the bank in 2007, but it was listed in the stock market again in 2010 after being sold by Merrill’s new owner, Bank of America Corp, following the 2008 financial crisis. Despite an initial $30 billion lifeline from 11 Wall Street banks in March, the efforts proved futile, in part because buyers balked at the prospect of having to realize large losses on its loan book.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
First Republic auction underway, with deal seen by Sunday, according to sourcesThe sale process kicked off this week after the lender that got swept up in a banking crisis last month failed to come up with a deal without government help
Read more »
First Republic Bank headed for FDIC receivership, says report, as worries of fresh sector turmoil growAnother U.S. bank — First Republic — is likely headed for receivership reports said in a fresh sign that more banking turmoil is coming. Read on.
Read more »
First Republic meets its ‘end', ‘financial calamity' will send gold above $5k - Michael LeeFirst Republic meets its ‘end', ‘financial calamity' will send gold above $5k - Michael Lee banking gold recession
Read more »
First Republic plunges on expectation of seizure by FDIC - BNN BloombergFirst Republic Bank shares fell as much as 54 per cent in extended New York trading on speculation that it would be seized by regulators, as regional US lenders are pressured by deposit drains and weakening investments.
Read more »
First Republic Bank headed for FDIC receivership, says report, as worries of fresh sector turmoil growAnother U.S. bank — First Republic — is likely headed for receivership reports said in a fresh sign that more banking turmoil is coming. Read on.
Read more »
FLOOD ADVISORY: 50 mm of rain expected over the weekend, most Sunday nightAfter a few days of relatively dry conditions, flood advisories are back as the weather office forecasts up to 50 mm of rain over the next 48 hours.
Read more »