First Republic Auction Results Expected During The US Night

US regulators are running an auction for First Republic Bank and according to Reuters PNC Financial Services, JP Morgan Chase and Citizens Financial Group are among the final bidders. The FDIC is expected to announce the auction results Sunday night. A Reuters source has said that there isn’t a scheduled time for the results at this point.

• Regulators have been attempting to finalise a deal on the sale of First Republic over the weekend with apparently around six interested banks.
• First Republic would be the third main US bank to fold. The troubled bank saw over $100bn in deposits withdrawn in Q1, leaving it with a funding crisis. It was given $30bn in support but that hasn’t saved it.
• For regulators to insure all First Republic deposits, as it did with SVB and Signature, they would require the approval of the Treasury Secretary, the President and super-majorities from the Fed and FDIC Boards.
• JP Morgan is one of the auction participants but it already holds more than 10% of US bank deposits and it cannot acquire a bank if it raises that level above 10% unless there is a waiver from regulators.
  - Reuters