Citigroup, Goldman Sachs, JP Morgan and Wells Fargo are among the banks discussing a lifeline for the San Francisco-based lender
Some of the US’s biggest banks are weighing a rescue bid for First Republic, a mid-sized bank whose shares have been pummeled amid a wider banking turmoil.
Citigroup, Goldman Sachs, JP Morgan and Wells Fargo are among the banks discussing a lifeline for the San Francisco-based lender, according to the Wall Street Journal.
The Journal also reported that top executives at the bank had sold millions of dollars in shares in the bank in the two months leading up to its share price collapse. In total insiders have sold $11.8m worth of stock so far this year.
First Republic’s shares fell 22% on Thursday morning but bounced back after the news of a possible deal broke. They are down close to 70% over the last five trading days and the bank’s market capitalization has fallen from $21bn on 8 March, when the Silicon Valley Bank ( SVB) crisis began, to less than $5bn.
First Republic, known for its affluent customer base, has been hit hard following the collapse of SVB, which was seized by federal regulators over the weekend.