On Thursday, regulators with the Federal Deposit Insurance Corporation (FDIC) reached out to banks, including JPMorgan Chase and PNC Financial Services Group, soliciting bids on beleaguered San Francisco-based First Republic Bank, whose shares have dropped 97 percent this year, and on Friday the FDIC moved forward with plans to place the bank under receivership.
Reuters reports that sources familiar said that First Republic Bank’s rapid decline meant a private sector rescue would not come fast enough, and that the FDIC would need to take a more active role and assume custodial responsibility for the bank. Because matters are confidential the source spoke to Reuters from a place of anonymity. After news of the bank being placed in receivership by the FDIC, the bank’s shares plummeted 50 percent on Friday in extended trading.
After a request for comment, the FDIC said, “We would not comment on or confirm whether we are […]
Read the Whole Article From the Source: thepostmillennial.com
