by laflammaster
via CNBC:
Shares of First Republic
dropped sharply on Friday as hopes dimmed for a rescue deal that might keep the bank afloat.Sources told CNBC’s David Faber that the probably consequence for the troubled bank is for the Federal Deposit Insurance Corporation to take it into receivership. The stock slid about 40% and was halted for volatility multiple times.
The stock has fallen greater than 90% this yr as investors have lost confidence within the bank after two regional lenders failed in March.
Other banks are being asked by the FDIC for potential bids on First Republic if the bank was seized by seized by the regulator, sources told Faber. There remains to be hope for an answer that doesn’t include receivership, in accordance with those sources.
First Republic told Faber on Friday that “we’re engaged in discussions with multiple parties about our strategic options while continuing to serve our clients.”
U.S. officials lead urgent rescue talks for First Republic
U.S. officials are coordinating urgent talks to rescue First Republic Bank (FRC.N) as private-sector efforts led by the bank’s advisers have yet to succeed in a deal, in accordance with three sources acquainted with the situation.
The Federal Deposit Insurance Corporation (FDIC), the Treasury Department and the Federal Reserve are amongst government bodies which have in recent days began to orchestrate meetings with financial firms about putting together an answer for the troubled lender, the sources said.
We Will Have Hell To Pay For This Government Intervention In Financial Markets
There goes one other $ 200B bank. First Republic ‘FRC’ at $ 4.31 down from $ 210 /share. The central planners’ fiat banking system is collapsing.
Wild.
Senator Krysten Sinema says, “It’s gravely concerning that retail participants, literally on a regular basis people, were in a position to determine something was flawed with Silicon Valley Bank, before regulators took motion.” pic.twitter.com/BoAcuPngb5
— unusual_whales (@unusual_whales) March 29, 2023