Bloomberg: First Republic Bank Is Said to Weigh Options Including a Sale
First Republic Bank, the San Francisco-based lender that was cut to junk by S&P Global Ratings and Fitch Ratings on Wednesday, is exploring strategic options including a sale, according to people with knowledge of the matter.
The bank, which is also weighing options for shoring up liquidity, is expected to draw interest from larger rivals, said some of the people, all of whom requested anonymity discussing confidential information. No decision has been reached and the bank could still choose to remain independent, they said.
A spokesperson for First Republic Bank declined to comment. First Republic said Sunday that it had more than $70 billion in unused liquidity to fund operations from agreements that included the Federal Reserve and JPMorgan Chase & Co. Still, its stock fell 21% Wednesday in New York trading to a decade-low of $31.16, giving it a market value of $5.8 billion.
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Update #1: First Republic Bank weighing options including sale – Bloomberg News (Reuters)
Update #2: First Republic Bank, which was downgraded to junk by S&P and Fitch, is looking at a possible sale: Bloomberg (Business Insider)
WNU Editor: When you have a credit rating agency like Moody’s downgrading the entire US banking system (link here) …. I repeat …. downgrading the entire US banking system, you know you have a problem. Here is an easy prediction. Expect ,ore bank closures in the coming days.