First Republic Bank (NYSE: FRC) is under the government’s scanner for rescue as the private sector delays settlements.
“U.S. officials are coordinating urgent talks to rescue FRC, as private-sector efforts led by the bank’s advisers have yet to reach a deal,” reported Reuters, citing sources familiar with the situation.
Recently, FRC announced a decline in deposits and revenue for the first quarter and said it would reduce its workforce by 20-25%.
The Federal Reserve, the Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) are some of the government entities that have recently started discussions with financial institutions about putting together a lifeline for the struggling lender, according to the sources.
The report added that the government’s involvement is helping bring more parties, including banks and private equity firms, to the negotiating table.
U.S. officials view a private-sector deal as preferable to First Republic falling into FDIC receivership, the reports mentioned, citing the sources.
Price Action: FRC shares are trading lower by 1.78% at $6.08 on the last check Friday.
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This article Bailout for First Republic? US Officials In Discussion For Bank’s Rescue: Report originally appeared on Benzinga.com
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