“What will most likely happen is the FDIC will seize control and then simultaneously resell the asset to the successful bidder,” Gary Cohn told CBS News’ “Face the Nation” on Sunday.
NEW YORK — Regulators continued their search for a solution to First Republic Bank’s woes over the weekend before stock markets were set to open Monday.and Signature Bank in early March, as investors and depositors have grown increasingly worried that the bank may not survive as an independent entity for much longer. The bank’s stock closed at $3.51 on Friday, a fraction of the roughly $170 a share it traded for a year ago.
“What will most likely happen is the FDIC will seize control and then simultaneously resell the asset to the successful bidder,” Cohn said. Before Silicon Valley Bank failed, First Republic had a banking franchise that was the envy of most of the industry. Its clients — mostly the rich and powerful — rarely defaulted on their loans. The 72-branch bank has made much of its money making low-cost loans to the rich, which reportedly included Meta Platforms CEO Mark Zuckerberg.
Those fears were crystalized in the bank’s recent quarterly results. The bank said depositors pulled more than $100 billion out of the bank during April’s crisis. San Francisco-based First Republic said that it was only able to stanch the bleeding after a group of large banks stepped in to save it with $30 billion in uninsured deposits.
Since the crisis, First Republic has been looking for a way to quickly turn itself around. The bank planned to sell off unprofitable assets, including the low interest mortgages that it provided to wealthy clients. It also announced plans to lay off up to a quarter of its workforce, which totaled about 7,200 employees at the end of 2022.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
First Republic seen drawing bids from JPMorgan and PNC amid report of 'imminent' FDIC seizureLenders including PNC Financial Services and JPMorgan Chase & Co., are said to be bidding for First Republic Bank, whose shares have been under pressure.
Les mer »
US FDIC asks JPMorgan, PNC for final First Republic bids due Sunday - Bloomberg NewsThe U.S. 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 on Saturday.
Les mer »
FDIC asks JPMorgan, PNC for final First Republic bids, Bloomberg reportsThe U.S. 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 on Saturday.
Les mer »
First Republic Bank Faces Potential Takeover by FDIC Amidst Financial Struggles – Bitcoin NewsAccording to multiple reports, First Republic Bank could be taken over by the Federal Deposit Insurance Corporation (FDIC).
Les mer »
FDIC asks JPMorgan, PNC for final First Republic bids: BloombergThe U.S. 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.
Les mer »
US FDIC asks JPMorgan, PNC for final First Republic bids - Bloomberg News By Reuters*FDIC ASKS JPMORGAN, PNC FOR FINAL FIRST REPUBLIC BIDS DUE SUNDAY $JPM $PNC $FRC
Les mer »