California lender, First Republic, is now under the scrutiny of US regulators as they strive to assess the cost of a possible takeover, according to four people briefed on the situation.
JPMorgan, PNC Bank, and a few non-bank investment firms, have been invited to submit bids for either the entirety or some parts of the company.
First Republic shares have fallen 97% recently due to paper losses in its mortgage book and other assets, as well as a deposit outflow.
With the bank appearing to be on the verge of collapse, it is highly likely that the Federal Deposit Insurance Corporation (FDIC) will have to take it over.
“We cannot comment on or confirm reports that we are bidding an open and operating bank,” the FDIC stated.
