ON Friday, first republic’s shares plunged by nearly 50% according to the financial times.
Reports suggest that the United States Federal Deposit Insurance Corporation (FDIC) is now preparing to place First Republic under receivership imminently.
Sources familiar with the matter say the FDIC has decided that First Republic’s position has deteriorated and there is no more time to pursue a rescue through the private sector.
Looking back at last month’s banking crisis, it can be recalled that on March 10, California-based Silicon Valley Bank collapsed.
In addition, 2 days later, state regulators closed the signature bank.
In a review of the Federal Reserve’s supervision and regulation of Silicon Valley Bank on Friday, the Board of Governors of the Federal Reserve System says:
“The Federal Reserve supervisors failed to take forceful enough action”.
Meanwhile, as of now, there have been no comments from First Republic or FDIC regarding the bank’s imminent receivership.
