First Republic Bank: US officials lead urgent rescue talks; US banking crisis
In March, First Republic was at the center of the regional banking crisis in the United States
Urgent discussions are being held by US officials to rescue First Republic Bank because the private-sector initiatives, led by the bank's advisers, have not yet reached an agreement.
As reported by sources, the Federal Deposit Insurance Corporation (FDIC), the Treasury Department and the Federal Reserve are among government bodies that have in recent days started to orchestrate meetings with financial companies about putting together a lifeline for the troubled lender.
One of the sources mentioned that the participation of the government is facilitating the involvement of more parties such as banks and private equity firms in the negotiations.
Meanwhile, another person familiar with the matter noted that it is unclear whether the U.S. government is considering participating in a private-sector rescue of First Republic.
The government's engagement, however, has emboldened First Republic executives as they scramble to put together a deal that would avoid a takeover by U.S. regulators.
In March, First Republic was at the center of the regional banking crisis in the United States.
The bank's rapid expansion fueled by attracting wealthy clients came to a halt when these clients started withdrawing their deposits, causing significant damage to the bank.
The sources requested anonymity because the discussions are confidential.
