Despite a $30 billion deposit injection from the ‘big banks’ yesterday, First Republic Bank shares are tumbling once again this morning prompting many of the institutions involved to consider a purchase of the beleaguered bank.
Fox Business reports that, according to people with direct knowledge of the matter, those said to be interested include Morgan Stanley and PNC Bank.
People with knowledge of the matter say banking regulators increasingly compare the current state of the banking system to the savings and loans crisis of the late 1980s, when so-called thrifts heavily invested in risky assets collapsed en masse.
“In this uncertain environment, big players who have solid funding will be buyers and the weakest will get bought,” said Chris Whalen, Chairman Whalen Global Advisors in New York.
” First Republic is an attractive acquisition for a large advisory firm and regulators would likely approve it.”
Sources with knowledge of the potential buyout say a deal could come within days, but it’s not guaranteed.
“Everyone is looking at buying First Republic,” said one CEO directly involved in the bailout.
“It’s a great bank suffering from a liquidity crisis.”
The question is – will the Biden administration allow a bank merger? Paging Liz Warren!
Fri, 03/17/2023 – 09:55
Click this link for the original source of this article.
Author: Tyler Durden
This content is courtesy of, and owned and copyrighted by, https://zerohedge.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.