FDIC reportedly approaches banks over First Republic
The US Federal Deposit Insurance Corp has asked banks including JPMorgan Chase & Co and PNC Financial Services Group to submit final bids for First Republic Bank by Sunday after gauging their initial interest earlier in the week, Bloomberg News reported. The banking regulator reached out to banks late on Thursday seeking indications of interest, including a proposed price and estimated cost to the agency's deposit insurance fund, the report said. Based on those submissions on Friday, the FDIC invited at least two companies to the next step in the bidding, the report added, citing people familiar with the matter. The FDIC said in an email: "We would not comment on or confirm whether we are bidding an open institution." PNC Financial declined to comment on the Bloomberg report. JPMorgan did not immediately respond to a voicemail and email seeking comment. The FDIC is preparing to place First Republic under receivership imminently, after the regulator decided the regional lender's position had deteriorated and there was not time to pursue a rescue through the private sector. If the San Francisco-based lender falls into receivership, it would be the third US bank to collapse since March, following the collapse of Silicon Valley Bank and Signature Bank. (Reuters)