NEW YORK (Reuters) – The U.S. federal deposit insurance authority (FDIC) is set to close regional bank First Republic, a person with knowledge of the matter said on Friday.
The bank regulator believes that the institution’s position has deteriorated to the point that it is too late to bail it out via the private sector, said the source requesting anonymity.
No representatives of First Republic or the FDIC immediately responded to requests for comment from Reuters.
First Republic announced on Monday that in the first three months of the year, its deposits fell to $104.47 billion from $176.43 billion in the fourth quarter of 2022.
Several large American banks injected 30 billion dollars into First Republic last March to try to avoid a domino effect after the cascading bankruptcies of Silicon Valley Bank, Signature and Silvergate.
The Federal Reserve on Friday released a damning analysis of its failure to identify weaknesses at Silicon Valley Bank (SVB) before its bankruptcy and pledged to tighten the regulations facing U.S. banks.
(Report Greg Roumeliotis, Jean-Stéphane Brosse)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
