PNC has inside track on bids for embattled First Republic Bank: report

Name: First Republic shares lost 93% of their value, 40% of deposits in Q1
Uploaded: 2023-04-27T17:16:42-04:00
Duration: 8 min 23 s
Description: Janney Managing Director Timothy Coffey tells ‘The Claman Countdown’ that First Republic Bank needs to ‘sell assets’ and raise capital but says nobody wants to put their losses onto their own books.

Janney Managing Director Timothy Coffey tells ‘The Claman Countdown’ that First Republic Bank needs to ‘sell assets’ and raise capital but says nobody wants to put their losses onto their own books.

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First Republic shares lost 93% of their value, 40% of deposits in Q1

Janney Managing Director Timothy Coffey tells ‘The Claman Countdown’ that First Republic Bank needs to ‘sell assets’ and raise capital but says nobody wants to put their losses onto their own books.

PNC Financial Services has the inside track in bidding on First Republic Bank as the Sunday deadline looms, Fox News Digital has learned.

The Federal Deposit Insurance Corp. (FDIC) asked JPMorgan Chase & Co., PNC Financial Services Group, and other banks to send final bids for First Republic Bank by Sunday after the federal corporation gauged interest last week, according to sources.

Now, sources inside JPMorgan Chase & Co and Bank of America told Fox News Digital that the banks have conceded PNC Bank has the inside track on bidding.

Sources previously told Fox News that there were five potential bidders, including JPMorgan Chase & Co. and PNC.

FDIC SETS SUNDAY DEADLINE FOR FIRST REPUBLIC BANK BIDS: REPORT

First Republic's shares have been in free-fall since Monday after it was revealed that the bank's deposits dropped 40% in the first quarter, as customers pulled their funds amid fears of a growing crisis after Silicon Valley Bank was seized by regulators earlier this year.

JPMORGAN, PNC BID TO BUY FIRST REPUBLIC BANK AMID POSSIBLE FDIC TAKEOVER: REPORT

Pedestrians walk by a First Republic bank on April 26, 2023, in San Francisco. (Justin Sullivan/Getty Images / Getty Images)

First Republic would be the third bank to fail following the collapse of Silicon Valley Bank and Signature Bank.

FIRST REPUBLIC BANK SHARES NOSEDIVE AMID UNCERTAINTY ABOUT RESCUE DEAL

On Friday, Reuters reported that the FDIC expected the bank to be taken over by the government. The outlet said a source familiar with the matter said the FDIC decided the regional bank's position had deteriorated, and left no time for a private sector rescue.

Automated teller machines (ATM) at a PNC Bank branch in Washington, D.C., on Jan. 8, 2021. (Stefani Reynolds/Bloomberg via Getty Images / Getty Images)

A PNC spokesperson told Fox News Digital they had no additional comment when asked about First Republic bidding on Sunday.

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The top bidder is expected to be announced later Sunday or on Monday.

Fox News Digital's Adam Sabes contributed to this report.