Stock Market News
First Republic may rely on US backing to facilitate deal – Bloomberg News
2023.03.21 18:42
© Reuters. FILE PHOTO: People are seen inside the First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike Segar
(Reuters) – Wall Street CEOs and U.S. officials discussing a deal for First Republic Bank (NYSE:) are exploring the possibility of government backing to encourage potential buyers, Bloomberg News reported on Tuesday.
The government could play a role in taking out assets that have eroded First Republic’s balance sheet, the report said, citing people with knowledge of the situation.
It added that other potential ideas discussed included offering liability protection, applying capital rules more flexibly or easing limits on ownership stakes.
Shares of the troubled bank were down nearly 18% in trading after the bell.
First Republic did not immediately respond to a Reuters request for comment.
