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FDIC Requests Final Bids for First Republic from JPMorgan, PNC

The FDIC has called for final bids from JPMorgan and PNC for First Republic Bank, as the troubled lender faces imminent receivership and potential collapse.

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FDIC logo

The U.S. Federal Deposit Insurance Corp (FDIC) has requested JPMorgan Chase & Co (NYSE: JPM) and PNC Financial Services Group (NYSE: PNC) to submit their final bids for First Republic Bank (NYSE: FRC) by Sunday. This comes after Bloomberg News reported that the FDIC assessed the banks' initial interest earlier in the week.

Indications of Interest Sought by FDIC

Late Thursday, the banking regulator contacted banks to gauge their interest, requesting proposed prices and estimates of the impact on the agency's deposit insurance fund, according to the report.

FDIC Invites Two Firms to Next Bidding Step

Following the submissions received on Friday, the FDIC has invited at least two firms to proceed to the next phase of the bidding process, as reported by sources familiar with the situation.

First Republic's Imminent Receivership

The news emerges as the FDIC prepares to place First Republic Bank under receivership shortly after determining that the regional lender's troubled position has worsened and no further time is available to seek a private sector rescue.

Third U.S. Bank Collapse Since March

Suppose the San Francisco-based First Republic Bank enters receivership. In that case, it will become the third U.S. bank to collapse since March, following Silicon Valley Bank's and Signature Bank's failures (OTC: SBNY).