First Republic Rescue May Rely on US Backing to Facilitate Deal

US officials and Wall Street leaders discussing an intervention at First Republic Bank are exploring the possibility of government backing to encourage a deal that would shore up the lender, according to people with knowledge of the situation. Sally Bakewell reports on Bloomberg Television.

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[davidw]

it is just unrealistic to think FDIC can continue to "insure all deposit for all banks"

[makedredd]

US backing sounds like code word for taxpayer bailout through increased future bank fees.

[dynamitedmoney]

That cash infusion comes with a heavy price. The payback terms are 120 days and has to remain liquid until it is paid back. It was fluff or smoke-screen to get investors back which failed. The sooner they find a buyer and/or FDIC steps in the sooner the recovery can begin. There are still billions in unrealized losses and FRC is net negative. Let’s not forget the junk credit rating and employee’s fleeing as well. Until then its just another sinking ship.

[skibbydweez]

Is contagion like Covid for banks ?!!! Do I have to wear face masks when I go get all my money out the checking account ??

[liquidassets]

How do you save a bank from going bankrupt?

[kurdik]

Get it over with before the contagion continues

[maxthemagition]

All this delay, gives the depositors plenty of time to get their money out.
Meanwhile the FED is trying to keep it from collapsing.
Seem a futile attempt to keep the dinosaurs alive.

[James]

When rates start to go down, FRC stock will rise. This rise will result in a short squeeze which will sky rocket the price even higher

[nenriu]

o ur a patriot front ....o interesting ...

[marq_]

My prediction: First Republic will fail this week.

[desmomotodesmomoto]

Bro, they can't let this bank fall.

[ninerfan]

Sally doesn’t know what she’s talking about. First Republic assets are mostly mortgages based assets, not debt securities like SVB invested in. Not all regional banks are like SVB. That’s why SVB failed. People are idiots for taking their money out of great banks.

[Drpermer]

Funny, we complain bitterly when a government plan to help students pay off loans arising from sleezy university administrators is developed, but when sleezy bankers want handouts, it's how much do you want.