US officials and Wall Street bankers are discussing various measures to rescue the struggling San Francisco-based First Republic Bank to prevent its possible collapse amid an increasingly tense situation in the US banking sector, Bloomberg reported, citing sources familiar with the matter
MOSCOW (Pakistan Point News / Sputnik - 22nd March, 2023) US officials and Wall Street bankers are discussing various measures to rescue the struggling San Francisco-based First Republic Bank to prevent its possible collapse amid an increasingly tense situation in the US banking sector, Bloomberg reported, citing sources familiar with the matter.
People involved in talks are considering the possibility of government intervention to make the company more attractive to investors or a buyer to avoid the failure of the bank, according to the report. Measures that were being discussed included lifting toxic assets out of First Republic, offering liability protection and easing limits on ownership stakes, among other things, the report added.
The talks on the matter were still ongoing, with a "variety of issues" regarding the bank remaining unresolved, the news agency stated.
Last week, First Republic, whose shares fell by a record 36% on Thursday, received a $30 billion cash infusion from a consortium of banks in an effort to stabilize the country's banking sector.
The rescue of First Republic Bank came after two large US lenders � Silicon Valley Bank (SVB) and Signature Bank � had to be rescued by the Federal Deposit Insurance Corp earlier in the month as depositors yanked billions of dollars from them after fears about their solvency.�
The SVB became the largest US bank to collapse since the 2008 financial crisis.
