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%.
