(Bloomberg) -- Shares of First Republic Bank rose in pre-market trading as the US banking industry and regulators hash out possible paths forward for the troubled regional lender.
Shares of the San Francisco-based bank rose as much as 14% in New York. The stock has plunged 95% this year through Thursday as the company struggles to navigate the turmoil in the aftermath of the collapse of Silicon Valley Bank and two other regional banks in March.
The lender’s advisers are working on a private-sector solution they hope could keep the embattled firm from being shut down by the Federal Deposit Insurance Corp., the Financial Times reported Friday, citing people it didn’t name.
At the same time, US officials are reportedly coordinating talks to rescue First Republic Bank, with FDIC, the Treasury Department and Federal Reserve orchestrating meetings about throwing a lifeline, Reuters reported, also citing unidentified people.
The lender has been under pressure ever since SVB’s demise stoked concerns about the soundness of other regional banks in the US. First Republic was left paying more for funding than it earns on many of its assets, meaning it faces what analysts predict will be at least a year of losses.
The bank’s executives emphasized in an earnings report earlier this week that it has ample cash reserves. Still, its leaders acknowledged that they are looking for strategic options.
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