A Wall Street Journal report also said that JP Morgan Chase & Co and Morgan Stanley were among the banks in talks to seek a possible exit for the bank.
The First Republic Bank sinks again this Thursday, March 16, by 11% and cuts the fall at the beginning of the day. Within this framework, the Bloomberg portal reported that different strategic options are being analyzed, including the sale. However, a Wall Street Journal report also said that JP Morgan Chase & Co and Morgan Stanley were among the banks in talks with First Republic Bank that could include a sizeable capital injection and even an outright takeover of the bank.
Bloomberg reported late Wednesday that the San Francisco-based bank is seeking increase your liquidity. His stocks have been hit hard by the liquidations of SBV and Signature Bank, and he lost more than two-thirds of its value in the last week. It should be noted that its business profile is similar to that of SVB, focused on technology companies and startups, since it provides services to similar clients.
S&P Global Ratings and Fitch Ratings downgraded First Republic’s debt rating on Wednesday to junk bond category, due to concerns about the flight of deposits to larger banks, considered safer.
The bank, which is looking at various ways to shore up liquidity, is expected to attract the interest of larger rivals, said some of the people consulted to Bloomberg. No decision has been made yet and the bank could choose to remain independentthey added.
Source: Ambito
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