First Republic Bank may secure a rescue deal
After a shattering week for First Republic Bank (NYSE:FRC) investors, U.S. regulators were attempting over the weekend to secure a sale of the failing bank.
According to Reuters, sources say about a half-dozen banks are bidding for First Republic, among them Citizens Financial (NYSE:CFG), PNC Financial (NYSE:PNC), and JPMorgan Chase (NYSE:JPM). The bidding process is being run by the Federal Deposit Insurance Company, sources told Reuters, and a deal should be announced by Sunday night.
This week saw steep declines in the shares that began when the bank disclosed $100B in customer withdrawals the previous month.
In an effort to stabilize the bank's finances, First Republic's advisors had attempted to persuade larger U.S. banks to acquire bonds from them at above-market prices, as reported by CNBC.
Shares closed the week with a massive 75% loss.
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