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First Republic Auction in Progress, Deal Expected by Sunday

Major banks, including Citizens Financial Group Inc (NYSE: CFG), PNC Financial Services Group (NYSE: PNC), and JPMorgan Chase & Co (NYSE: JPM) are among approximately six bidders participating in the auction for First Republic Bank (NYSE: FRC), overseen by U.S. regulators, according to insiders.

First Republic Bank
First Republic Bank

Guggenheim Securities Advises FDIC on Sale

Guggenheim Securities is advising the U.S. Federal Deposit Insurance Corp (FDIC) on the sale process, as reported by two sources familiar with the matter.

First Republic's Struggles Prompt Auction

The auction began this week after the First Republic, affected by the recent banking crisis, failed to secure a deal without government assistance, according to three insiders.

Bidders Reviewing First Republic's Books

Bidders were asked to submit non-binding bids by Friday and are now examining the bank's financial records over the weekend said one of the sources.

Deal Announcement Expected Sunday Night

A deal is anticipated to be announced Sunday night before Asian markets open, with the regulator expected to seize the troubled lender simultaneously, as informed by three sources.

Previous Efforts to Save First Republic

First Republic's sale would conclude a lengthy attempt to withstand the market downturn, including a $30 billion injection from U.S. banking giants like Bank of America Corp (NYSE: BAC), Citigroup Inc (NYSE: C), JPMorgan, and Wells Fargo (NYSE: WFC) & Co.

Private Sector Rescue Deemed Unfeasible

An insider revealed that the U.S. banking regulator determined First Republic's situation had worsened, and pursuing a private-sector rescue was no longer viable.

Regional Bank Stocks Decline

Shares of some regional banks fell on Friday as First Republic's impending FDIC receivership became apparent, with PacWest Bancorp down 2% and Western Alliance (NYSE: WAL) down 0.7%.