US Govt. Trying to Save Its Bankrupt Bank: Report
TEHRAN (Tasnim) – US authorities are making urgent efforts to rescue the struggling First Republic Bank, as attempts by private-sector companies have thus far failed.
People familiar with the matter told Reuters that the Federal Deposit Insurance Corporation (FDIC), Treasury Department, and Federal Reserve have arranged meetings with financial firms in recent days in an effort to hand the distressed lender a lifeline, Reuters reported on Friday, citing sources.
Sources claimed that the step could pave the way for more parties, including banks and private equity companies, to become involved. However, they added it was unclear if the government was considering participating in a private-sector rescue of First Republic.
They also highlighted that US officials view a private-sector deal as preferable, rather than First Republic falling into FDIC receivership.
“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic stated.
Silicon Valley Bank, a significant player serving the tech and startup sectors, was shut down by regulators last month shortly after California-based, crypto-focused Silvergate liquidated its bank.
Earlier, New York-based Signature Bank was also closed down by regulators due to liquidity concerns.
