2023-04-30 04:04:00
Authorities allowed a number of institutions to access more of the bank’s financial information
The US authorities have asked several financial institutions to submit offers to buy the assets of the First Republic Bank, which has been in trouble since mid-March, according to an informed source told AFP.
The source added that it is expected to receive offers from four and six institutions.
But the bank failed to reach a satisfactory rescue package, and its share, which was already in poor condition, fell following it confirmed on Monday evening that many of its customers withdrew in the first quarter their deposits estimated at more than $100 billion. This led the authorities to intervene in the file.
In this context, the agency in charge of guaranteeing bank deposits and the Ministry of Economy contacted in the middle of the week with several banks that might be interested in acquiring the “First Republic”, according to what the source told AFP.
The source explained that the authorities allowed a number of institutions to view more financial information on the “First Republic” on Friday.
The Deposit Insurance Agency did not want to comment or confirm this information, and the US Federal Reserve and the Ministry of Economy did not respond to requests for comment from AFP.
According to many US media outlets, the Deposit Insurance Agency will, in the first stage, take over the management of the bank, whose assets amounted to $233 billion at the end of March. Then the FDIC will quickly sell part or all of the bank’s assets to another institution.
According to CNBC, if the deal goes this way, it might be announced as early as Monday.
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