First Republic Bank to be taken over by FDIC: Report
The FDIC has decided that the bank has no more time to pursue a private sector rescue
Barron's reporter Carleton English discusses First Republic Bank's dramatic stock fall on 'The Claman Countdown.'
First Republic Bank will be placed under the receivership of the U.S. Federal Deposit Insurance Corporation imminently, according to a report.
The U.S. Federal Deposit Insurance Corporation will reportedly take control of troubled First Republic Bank. (AP Photo/Peter Morgan / AP Newsroom)
Citing a person familiar, Reuters reported Friday that the FDIC has decided that the regional bank's position has deteriorated, leaving no more time to go after a private sector rescue.
SIGNATURE BANK COLLAPSE BLAMED ON ‘POOR MANAGEMENT,’ FDIC REPORT SAYS
A First Republic Bank branch in New York, US, on Friday, March 10, 2023. (Photographer: Jeenah Moon/Bloomberg via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FRC | NO DATA AVAILABLE | - | - | - |
The outlet reported earlier in the day that officials from the FDIC, the Treasury Department and the Federal Reserve were coordinating talks to rescue the bank after private-sector efforts failed to yield a deal.
FED REPORT ON SILICON VALLEY BANK COLLAPSE BLAMES MISMANAGEMENT, WEAK GOVERNMENT OVERSIGHT
FDIC representatives speak with customers outside the Silicon Valley Bank headquarters in Santa Clara, California, March 13, 2023. (REUTERS/Brittany Hosea-Small / Fox News)
First Republic's shares have been in free-fall since Monday after the closing bell following the bank's revelation that its deposits dropped 40% in the first quarter as panicked customers pulled their funds amid fears of a growing crisis after Silicon Valley Bank was seized by regulators last month.
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FOX Business' Joe Toppe and Reuters contributed to this report.