US officials are reportedly holding emergency discussions to save First Republic Bank, as attempts by private sector banks to reach a resolution have failed thus far.
According to Reuters, the Federal Deposit Insurance Corporation (FDIC), the Treasury Department, and the Federal Reserve are among the government entities that have commenced meetings in recent days to assemble a lifeline for the regional lender.
The government’s participation has helped bring additional parties, including banks and private equity firms, to the negotiating table.
It is uncertain whether the US government is contemplating joining in a private-sector rescue of First Republic.
Since the collapse of Silicon Valley Bank and Signature Bank in March, First Republic’s shares have plummeted by 95% due to its involvement in the regional banking crisis.
Wall Street banks have been trying to resolve the First Republic issue since 11 of the biggest US lenders deposited $30bn (£24bn) at the bank on March 16th to mitigate the regional banking crisis.
First Republic has stated that they are “engaged in discussions with multiple parties about our strategic options while continuing to serve our clients.”
