US requests buyer for First Republic Bank within 24 hours
The position of some banks in the United States is at risk Weeks after the bankruptcy of Silicon Valley Bank and Signature Bank last March. As reported by ABC, First Republic Bank (FRB) had to be bailed out by several of the country’s most powerful banks, which injected $30,000 million, in order to spread panic throughout the rest of the financial system.
In this way, concern is growing about the scenario of medium-sized banks, such as the First Republic. Now, to try to stabilize the American financial situation, Federal Deposit Insurance Corporationknown as FDIC for its English acronym, He tries to find a potential deal to take over First Republic Bank deposits And prevent the federal government from having to take care of it.
Among the financial entities that could acquire FRB is mainly JPMorgan Chase, BNC Financial Services and Bank of America, as published by The New York Times. North American media also indicated that the agreement could take place all day, since then Work around the clock to find a buyer before the stock market opens on Monday. It is estimated that whoever takes over the first republic will have to bear the guarantee of deposits greater than $250,000.
These current conditions derive from a week in which First Republic Bank suffered a massive deposit withdrawal that led to a decline of up to 75% of the value of its shares. In addition, since the beginning of March, FRB had lost more than 90% of its market capitalization and also lost 41% in its deposits. Between the end of last year and the last days of March. As a preliminary measure, this bank raised at the beginning of the week A savings plan in which it has been announced to cut between 20% and 25% of its workforceas well as less office space, cuts in executive compensation or reductions in non-essential projects.
