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US Regulators Race to Find a Rescuer for First Republic Bank

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US regulators are scrambling to find a buyer for embattled lender First Republic Bank after it admitted to losing $100bn in deposits in March. The Federal Deposit Insurance Corporation has reportedly asked six banks to bid on the bank, with an announcement of the deal expected soon. JP Morgan Chase and Bank of America are among the banks believed to have been invited to bid for the mid-sized US lender. If a buyer is not found, the FDIC could take similar actions to prevent a run on the bank as it did when Silicon Valley Bank and Signature Bank collapsed. Concerns about the global banking industry have been growing due to the sharp increase in interest rates over the past year, which has negatively affected banks’ portfolios.



Customers withdrawing money from First Republic Bank
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US regulators are trying to find a new buyer for the bank because it’s been having some troubles. The Federal Deposit Insurance Corporation (FDIC) has asked six banks to make a bid for First Republic Bank, and we might hear about a deal as soon as Sunday.

Last week, First Republic Bank told everyone that customers took out $100bn from their bank accounts in March. This made their shares drop a lot because people started worrying that there might be a banking crisis. A similar thing happened to Silicon Valley Bank and Signature Bank, which both collapsed.

The FDIC is a financial regulator in the US, and they asked for bids for First Republic Bank last week. They’ve been looking at them all weekend. Investment banking giant JP Morgan Chase and Bank of America are two of the banks that might buy the bank.

There are some concerns about the banking industry all over the world because central banks have been raising interest rates a lot. This has affected how much money banks have, and it’s making people worried that other banks might be in trouble like First Republic Bank.


First Republic Bank is a mid-sized bank, just like Silicon Valley Bank. In March, 11 US banks gave First Republic Bank $30bn to try to help them out, including JP Morgan Chase. But then last week, they said how much money people had taken out in March and that made investors worried.

First Republic Bank has lots of wealthy clients who might lose money if the bank isn’t sold. In the US, the FDIC insures deposits up to $250,000, so if people start worrying and taking their money out of the bank, the FDIC will guarantee their money to prevent a run on the bank.

If the FDIC can’t find a buyer for First Republic Bank, they might have to do something similar to what they did when Silicon Valley Bank and Signature Bank collapsed.


Deidre Hall, the founder and writer of a successful website, possesses a bachelor's degree in journalism and communications, providing her with a strong foundation in effective writing techniques and media literacy. With a passion for storytelling and a talent for connecting with readers, Deidre's captivating articles and well-researched content have solidified her as an esteemed authority in her field. Her expertise extends beyond writing, as she has developed skills in web design, user experience, and digital marketing. With a keen eye for aesthetics and an understanding of SEO principles, Deidre has created an engaging and visually appealing website that offers a seamless browsing experience for visitors. Through her combination of education, writing prowess, and versatile skills, Deidre Hall continues to make a significant impact as a website owner and writer.

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