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| Regulators Prepare to Seize and Sell First Republic | Regulators Prepare to Seize and Sell First Republic |
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| Federal regulators were racing over the weekend to seize and sell the troubled First Republic Bank before financial markets open on Monday, according to people with knowledge of the matter, in a bid to put an end to a banking crisis that began with the collapse of Silicon Valley Bank. | Federal regulators were racing over the weekend to seize and sell the troubled First Republic Bank before financial markets open on Monday, according to people with knowledge of the matter, in a bid to put an end to a banking crisis that began with the collapse of Silicon Valley Bank. |
| The effort, led by the Federal Deposit Insurance Corporation, comes after First Republic’s shares tumbled 75 percent since Monday, when the bank disclosed that customers had withdrawn more than half of its deposits. It became clear this past week that nobody was willing to ride to First Republic’s rescue before a government seizure because larger banks were worried that buying the company would saddle them with billions of dollars in losses. | The effort, led by the Federal Deposit Insurance Corporation, comes after First Republic’s shares tumbled 75 percent since Monday, when the bank disclosed that customers had withdrawn more than half of its deposits. It became clear this past week that nobody was willing to ride to First Republic’s rescue before a government seizure because larger banks were worried that buying the company would saddle them with billions of dollars in losses. |
| The F.D.I.C. has been talking with banks that include JPMorgan Chase, PNC Financial Services and Bank of America about a potential deal, three of the people said. A deal could be announced as soon as Sunday, these people said, cautioning the situation was rapidly evolving and might still change. Any buyer would most likely assume the deposits of First Republic, eliminating the need for a government guarantee of deposits in excess of $250,000 — the limit for deposit insurance. | The F.D.I.C. has been talking with banks that include JPMorgan Chase, PNC Financial Services and Bank of America about a potential deal, three of the people said. A deal could be announced as soon as Sunday, these people said, cautioning the situation was rapidly evolving and might still change. Any buyer would most likely assume the deposits of First Republic, eliminating the need for a government guarantee of deposits in excess of $250,000 — the limit for deposit insurance. |
| As of Sunday morning, at least a few bidders had been told that they had until noon to submit their offers, according to two people familiar with the matter. The Federal Deposit Insurance Corporation did not comment. | As of Sunday morning, at least a few bidders had been told that they had until noon to submit their offers, according to two people familiar with the matter. The Federal Deposit Insurance Corporation did not comment. |