First Republic Bank, based in San Francisco, is facing a dire situation as the U.S. Federal Deposit Insurance Corporation (FDIC) prepares to place it under receivership (Reuters). The bank’s shares have plummeted about 75% this week, prompting urgent talks to rescue it (Fortune). However, the FDIC is planning to take ownership of the bank imminently, leaving no time for private solutions (Fox Business). JPMorgan Chase & Co. and PNC Financial Services Group are expected to bid for First Republic Bank after it is taken over by the FDIC (Fox Business). The bank’s advisers have yet to find a solution in the private sector (Reuters).
If the FDIC takeover proceeds, it could play out in three ways, both of which would be terrible for shareholders (Fortune). First Republic Bank’s stock has dropped 45% in after-hours trading on Friday, on growing concerns about its future (Barron’s). Reports indicate that the FDIC is set to seize control of First Republic Bank (CBS News). The lender looks headed toward a government takeover, causing a 43% plunge in its shares (Markets Insider).
In the midst of the bank’s current state, relief checks and new SNAP benefits are being announced, along with concerns about jobless claims and PCE (Yahoo Finance). The situation at First Republic Bank is dire, and the coming days will determine what will become of it (The New York Times).
(Reuters, Fox Business, Fortune, JPMorgan Chase & Co., PNC Financial Services Group, CBS News, Markets Insider, Yahoo Finance, The New York Times)
