First Republic Bank Fate Uncertain; Unclear If Government Will Directly Intervene

Objectivity 4.8 | Credibility 4.6 | Relevance 4.6

The fate of failing First Republic Bank is still unknown and while the The Federal Deposit Insurance Corporation (FDIC), the Treasury Department and the Federal Reserve are helping to coordinate talks to find a private-sector solution, it is unclear if the government will directly participate.  First Republic began its decline after wealthy clients withdrew more than $100 billion in the first quarter of this year. First Republic shares have lost 95% of value since March 8 and the failures of Silicon Valley Bank and Signature Bank. Sources say that a private-sector deal is preferred by U.S. officials rather than the bank going into receivership, but the Treasury Department has declined to comment while the Fed and FDIC have not replied to inquires.