By Chris Dorrell
The U.S. Federal Deposit Insurance Corp has asked banks including JPMorgan 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.
The banking regulator reached out to banks late Thursday seeking indications of interest, including a proposed price and estimated cost to the agency’s deposit insurance fund, the report said.
Based on those submissions on Friday, FDIC invited at least two firms to the next step in the bidding, the report added, citing people familiar with the matter.
The news comes as FDIC is preparing to place First Republic under receivership imminently, after the regulator decided the troubled regional lender’s position has deteriorated and there is no more time to pursue a rescue through the private sector.
If the San Francisco-based lender falls into receivership, it would be the third U.S. bank to collapse since March, after the collapse of Silicon Valley Bank and Signature Bank.
Reuters – Jyoti Narayan and Alexandra Hudson
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