Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Sayyed Ali Khamenei: The model Trump is presenting to Arab countries is absolutely a failed one
The leader of the Islamic Revolution and the Islamic Republic of Iran Sayyed Ali Khamenei: Trump's remarks source of shame, embarrassment for him, Americans
Al-Zaidi to Al Mayadeen: There is a pressing need to restructure the regional landscape, a challenge facing the Baghdad Summit, and we hope it will succeed in doing so
Al-Zaidi to Al Mayadeen: Among the urgent issues on the summit’s agenda are ending the war in Palestine and addressing the complex situation in Syria
Al-Zaidi to Al Mayadeen: We hope the summit will yield reasoned solutions that serve the interests of regional stability
Al-Zaidi to Al Mayadeen: We hope that the summit will be an opportunity to achieve the long-awaited breakthrough in all regional issues
Iraqi presidential spokesperson Abdullah al-Zaidi to Al Mayadeen: The significance of the summit stems from the critical timing under which it is being convened
Yemeni Ministry of Health: The Zionist aggression on the ports of Hodeidah and Salif in western Yemen has killed one and injured 11
Yemenia Airways flights to and from Sanaa International Airport resumed, following the return of 134 passengers from Queen Alia Airport in Jordan
Russia's Putin invites league of Arab states, secretary general to take part in 1st Russian-Arab summit in October: Kremlin

US banks bid to acquire collapsed First Republic, deal expected Sunday

  • By Al Mayadeen English
  • Source: News websites
  • 30 Apr 2023 15:35
  • 5 Shares
3 Min Read

The FDIC hopes to seal the arrangement by Saturday before markets open on Monday.

  • x
  • US banks to bid on acquisition of collapsed First Republic
    A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. (Reuters)

Large US banks, including JPMorgan and PNC Financial Services, are set to submit a bid to buy out failing First Republic Bank, as the Federal Deposit Insurance Corporation (FDIC) hopes to seal over the weekend, sources familiar with the matter said.

The US banking system continues to raise concerns after shares of First Republic plummeted over 50% on Friday. The bank's first-quarter reports on Monday revealed that over $100 billion of deposits were withdrawn over customer fears.

The Fed aims to see the deal finalized before markets open on Monday, in an attempt to calm concerned investors before another bank crashes.

Read more: US capitalism is ‘breaking down before our eyes’: Griffin

The FDIC had set up to receive proposals from potential bidders earlier this week, and asked for interested parties to notify the agency by Friday at most, the sources said, adding that the FDIC desires to approve final offers by Sunday.

Some of the options currently considered by the FDIC are putting its hands on the bank or selling its assets to other financial firms.

The agency is expected to take the bank into receivership simultaneously with the sale process, sources said earlier. But the issue might change over the weekend given the uncertainty regarding the bid outcome.

In just the past few weeks, and right after the SVB collapse, First Republic lost 97 percent of the value of its shares.

Related News

S&P downgrades US banks credit ratings, shares drop

US Treasury's Adeyemo: Recession looming if US defaults on debt

A consortium of 11 US private banks, two of which are JPMorgan and PNC, injected $30 billion worth of capital in the bank in mid-March to stabilize its exposure caused by the flight of deposits.

Read more: Moody's cuts US banking sector view to negative after banks collapse

Action dilemma

So far, it is still unclear what steps the US government would take.

In normal cases, the Fed only covers depositors up to 250,000 in small and mid-sized banks. 

But following the bank collapses last March, the Fed and FDIC decided to guarantee deposits that exceed the $250,000 mark in attempts to fight contagion fear across the banking sector.

However, former FDIC Chair Sheila Blair said the government "ill-advisedly created an expectation that for any future bank failures, uninsured deposits would be protected."

Nonetheless, if the government did not take this action this time, "I do worry that that's going to surprise people and could be disruptive," she added.

First Republic is the latest in a series of bank crashes the United States has been witnessing lately.

Following the collapse of Silicon Valley Bank (SVB), New York's Signature Bank, and Silvergate Bank, which marked a historic failure in the US banking system, many have attributed the collapses to soaring interest rates.

In March, former Lehman Brothers executive Lawrence McDonald revealed that 50 more US bank collapses could be underway if the US government does not address structural issues.

  • US Banks
  • First Republic
  • Signature Bank
  • SVB
  • Silvergate

Most Read

Two F-35 jets arrive at it's new operational base Wednesday, Sept. 2, 2015, at Hill Air Force Base, in northern Utah. (AP)

F-35 near-misses over Yemen signal new risks for 'Israel': Forbes

  • Politics
  • 14 May 2025
Palestinians pray over bodies of people killed in the Israeli bombardment who were brought from the Shifa hospital before burying them in a mass grave in the town of Khan Younis, southern Gaza Strip, Wednesday, Nov. 22, 2023. (AP )

Gaza casualty figures mask a much bigger horror, new study shows

  • Politics
  • 11 May 2025
Gaza and the logic of necropolitics: Sovereignty measured by killing

Gaza and the logic of necropolitics: Sovereignty measured by killing

  • Politics
  • 15 May 2025
Abu Obaida

Abu Obeida posts shortly after Israeli reports about his assassination

  • Palestine
  • 15 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
Israeli media: Yemen may push 'Israel' towards ceasefire in Gaza
MENA

Israeli media: Yemen may push 'Israel' towards ceasefire in Gaza

Palestinians struggle to get donated food at a community kitchen in Khan Younis, Gaza Strip, Friday, May 16, 2025 (AP)
Politics

Trump administration planning to send 1 million Palestinians to Libya

President Donald Trump greets Israeli Prime Minister Benjamin Netanyahu at the White House, Monday, April 7, 2025, in Washington. (AP)
Politics

'Israel' concerned, says US withholding info about indirect Iran talks

Israeli Prime Minister Benjamin Netanyahu during the annual ceremony at the Yad LaBanim Memorial in occupied al-Quds on Tuesday, April 29, 2025 (AP)
Politics

Netanyahu cancels Vatican visit over fears of ICC arrest

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS