First Republic Bank could have a new owner by Monday
JPMorgan Chase & Co (NYSE: JPM) and PNC Financial Services Group Inc are reportedly interested in taking over their struggling peer First Republic Bank (NYSE: FRC).
Deal could be announced tomorrow
U.S. regulators led by the Federal Deposit Insurance Corporation (FDIC) have demanded that potential suitors submit their final buyout proposals by Sunday afternoon.
It’s not yet a given, though, that one of the aforementioned two will end up acquiring the commercial bank since others, including the Bank of America are considering bidding as well, according to the Wall Street Journal.
If an acceptable offer is made within the deadline, it’s likely that a deal will be announced on Monday. Earlier this week, the FDIC was said to be preparing to place First Republic Bank under receivership.
“FRC” is down over 97% versus its year-to-date high at writing.
First Citizens had bought SVB last month
Such a deal, the regulator hopes, will bring some comfort to markets and help put an end to the ongoing pain for U.S. regional banks.
Knowing that First Republic is now under the ownership of a financially stable lender will serve to calm its customers as well.
The stock market news arrives about a month after First Citizens agreed to buy the Silicon Valley Bank on such favourable terms that saw its shares shot up a whopping 55%.
Last week, First Republic Bank reported better-than-expected profit and revenue for its first financial quarter. The stock still crashed on deposits that tanked over 40% in Q1 as Invezz reported HERE.
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