First Republic’s Fate Uncertain After Stock’s Harrowing Drop
- Some senior FDIC officials expect bank to keep seeking a deal
- Meanwhile, larger banks are preparing for a potential seizure
A First Republic Bank branch in New York.
Photographer: Stephanie Keith/BloombergThis article is for subscribers only.
First Republic Bank’s week of harrowing stock drops and urgent work toward a deal to shore up its balance sheet ended with the lender’s fate in limbo.
The Federal Deposit Insurance Corp., keeping tabs on the bank’s deposits and funding, hasn’t reached a decision on intervening at the troubled lender, according to people with direct knowledge of the matter. Some senior officials there expect the firm’s management will continue pursuing talks for a private-sector deal to bolster its finances.