Photo Credit: Sarah Stierch / Wikimedia
First Republic Bank in San Francisco, California

The US Federal Deposit Insurance Corporation (FDIC is preparing to seize the San Francisco-based First Republic Bank, according to Reuters.

The FDIC has asked major banks including JPMorgan Chase & Co. and PNC Financial Services Group to submit final bids for the bank by Sunday, Bloomberg News reported Saturday.


The move comes in the wake of a major crash in the value of the bank’s shares, which dropped by approximately 75 percent this week following a disappointing first-quarter earnings report Monday.

In its report, the bank said its deposits have dropped by more than $100 billion since January 1, with total deposits down by 43 percent to $104.5 billion, instead of the $136.7 billion in deposits expected by analysts.

The bank’s shares have dropped by a total of approximately 97 percent since the start of 2023 and on Friday, the stock lost more than half of its value.

First Republic received an injection of some $100 billion last month from Bank of America Corp, Citigroup Inc., JPMorgan and Wells Fargo & Co., hoping to head off another crisis after the collapse of Silicon Valley Bank and Signature Bank.

A statement from FDIC on the status of First Republic Bank is expected by Sunday.


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Hana Levi Julian is a Middle East news analyst with a degree in Mass Communication and Journalism from Southern Connecticut State University. A past columnist with The Jewish Press and senior editor at Arutz 7, Ms. Julian has written for, and other media outlets, in addition to her years working in broadcast journalism.