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.

Advertisement




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.


Share this article on WhatsApp:
Advertisement

SHARE
Previous articleLatest ‘US News & World Report’ Graduate-School Rankings Mixed Bag for Jewish Schools
Next article75 Reasons Why I Love Israel
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 Babble.com, Chabad.org and other media outlets, in addition to her years working in broadcast journalism.