First Republic rescue may rely on US backing to facilitate deal - Bloomberg News
Reuters
Published Mar 21, 2023 06:27PM ET
Updated Mar 21, 2023 07:31PM ET
(Reuters) -Wall Street CEOs and U.S. officials discussing an intervention at First Republic Bank (NYSE:FRC) are exploring the possibility of government backing to encourage a deal, Bloomberg News reported on Tuesday, citing people with knowledge of the situation.
Among options, the government could play a role in lifting assets out of First Republic that have eroded its balance sheet, according to the report.
Additional ideas have included offering liability protection, applying capital rules more flexibly or easing limits on ownership stakes, Bloomberg News reported.
First Republic, whose shares were down nearly 18% in aftermarket trading, declined to comment.
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Written By: Reuters
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