US authorities are now weighing an expansion of an emergency lending facility which could help boost First Republic bank after its stock plunged more than 90% this month amid the banking crisis.
Earlier this month customers lined up at a First Republic to withdraw their cash after Silicon Valley Bank collapsed.
US authorities are considering expanding an emergency lending facility for banks in ways that would give First Republic Bank more time to shore up its balance sheet, according to people with knowledge of the situation.
Officials have yet to decide on what support they could provide First Republic, if any, and an expansion of the Federal Reserve’s offering is one of several options being weighed at this early stage. Regulators continue to grapple with two other failed lenders — Silicon Val ..
Even short of that step, watchdogs see First Republic as stable enough to operate without any immediate intervention as the company and its advisers try to work out a deal to shore up its balance sheet, the people said, asking not to be named discussing confidential talks.
So who gets bailed out?
According to Treasury Secretary Janet Yellen, the US government is going to pick the winners and losers.
BREAKING: US authorities are weighing an expansion of an emergency lending facility, a move that could give First Republic more time to bolster its health t.co/yEfwlFu1mX
— Bloomberg (@business) March 25, 2023