US regulators have urged financial institutions to bid for the assets of struggling First Republic bank since mid-March, a source familiar with the matter told AFP.

Four to six of them are expected to do so, the same source added.

First Republic Bank is facing increasing pressure after the back-to-back failures of two other banks with similar profiles – Silicon Valley Bank and Signature Bank – in early March.

But the bank has been unable to come up with a satisfactory “rescue” plan and when it confirmed on Monday night that many of its customers had withdrawn their money, withdrawing more than 100 billion in total, its already struggling stock plummeted. .

The authorities finally decided to intervene.

The Federal Deposit Insurance Corporation (FDIC) and the Treasury Department contacted the heads of various financial institutions in the middle of the week to determine whether and to what extent they would be interested in buying it, according to the AFP source.

Last Friday, some of them gained access to more information about the condition of First Republic, he added.

The FDIC declined to comment or confirm. The Federal Reserve and Treasury did not respond to requests for comment.

A spokesman for First Republic declined to comment.

According to American media, in the first stage the FDIC will take control of this bank.

Based on the amount of its assets ($233 billion at the end of March), it will be the second largest bank failure in US history – if investment banks like Lehman Brothers are removed from the picture – after that of Washington Mutual in September 2008, ahead of those of SVB and Signature last month.

After the FDIC takes control, the intent is then to sell some or all of First Republic to another financial institution.

According to CNBC, if it does go that route, the deal would likely be announced early Monday morning to avoid upsetting First Republic customers.