Handicapping the reported bidders for First Republic
There are reportedly five banks that have been asked to submit bids to the FDIC in this weekend’s rumoured receivership sale of First Republic Bank. All can “afford” the bank with sufficient FDIC assistance, although a truly private deal is effectively impossible outside of a collective bid by the banks that provided $30bn in emergency deposits last month. The key for the bidders is finding a way to hold on to First Republic’s rainmakers and customer service model, which are the reason it has been so successful in acquiring and retaining wealthy customers.