Active Stocks
Fri Jun 14 2024 15:58:47
  1. HDFC Bank share price
  2. 1,597.45 1.05%
  1. State Bank Of India share price
  2. 840.20 -0.44%
  1. Tata Steel share price
  2. 183.05 0.30%
  1. ICICI Bank share price
  2. 1,105.10 -0.20%
  1. Kotak Mahindra Bank share price
  2. 1,717.00 -0.54%
Business News/ Markets / Stock Markets/  FDIC asks banks to submit final bids for First Republic by Sunday: report
BackBack

FDIC asks banks to submit final bids for First Republic by Sunday: report

The bidding process could pave the way for a tidier sale of First Republic than the drawn-out auctions that followed the collapse of Silicon Valley Bank and Signature Bank last month

The stock of First Republic Bank is down 97% this year. (Bloomberg)Premium
The stock of First Republic Bank is down 97% this year. (Bloomberg)

The Federal Deposit Insurance Corp. (FDIC) has asked banks including JPMorgan Chase & Co., PNC Financial Services Group Inc., US Bancorp and Bank of America Corp. to submit final bids for First Republic Bank by Sunday, a Bloomberg report said on Sunday.

Citizens Financial Group Inc. is also involved in the bidding, a Reuters report said.

On Thursday, the regulator reached out to some banks seeking indications of interest, including a proposed price and an estimated cost to the agency’s deposit insurance fund. 

The FDIC kick- started the bidding process this week, the Reuters report said. The bidders were told to give non-binding offers by Friday and were studying First Republic's books over the weekend, the report added.

A deal is expected to be announced on Sunday night, the Reuters report also said.

A few proposals that surfaced in recent days have called for a consortium of stronger banks to buy assets from First Republic for more than their market value.

The bidding process could pave the way for a tidier sale of First Republic than the drawn-out auctions that followed the collapse of Silicon Valley Bank and Signature Bank last month.

In March, a group of 11 banks had deposited $30 billion into First Republic giving it time to find a private-sector solution.

The stock of First Republic Bank is down 97% this year. On Friday, the stock closed at $3.51, 43.30% lower. 

By Friday, First Republic's market value had hit a low of $557 million, down from its peak of $40 billion in November 2021.

Weighing on First Republic’s balance-sheet is a mountain of low-interest loans, including an unusually large portfolio of jumbo mortgages to wealthy clients. Such debts have lost value amid interest-rate hikes, leaving the firm facing losses if forced to sell them. 

(With inputs from agencies)

 

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 30 Apr 2023, 09:16 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started