First Republic Bank auction under way, with deal expected by Sunday

Citizens Financial Group, PNC Financial Services Group and JPMorgan Chase & Co are among roughly half a dozen bidders vying to buy First Republic Bank

A deal is likely to be announced on Sunday night before Asian markets open, with the regulator expected to also seize the troubled lender at the same time, sources said

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A security guard stands outside a First Republic Bank branch in San Francisco, California, US on Friday. Photo: Reuters

Published: 3:04am, 30 Apr 2023

Banks including Citizens Financial Group, PNC Financial Services Group and JPMorgan Chase & Co are among roughly half a dozen bidders vying to buy First Republic Bank in an auction process being run by US regulators, according to sources familiar with the matter.

Guggenheim Securities is advising the US Federal Deposit Insurance Corp (FDIC) on the sale process, two sources familiar with the matter said.

The process kicked off this week after the lender that got swept up in a banking crisis last month failed to come up with a deal without government help, three of the sources familiar with the situation said.

The bidders were asked to give non-binding bids by Friday and are studying the bank’s books over the weekend, one of the sources said.

A deal is likely to be announced on Sunday night before Asian markets open, with the regulator expected to also seize the troubled lender at the same time, three of the sources said.

FDIC, Guggenheim and the banks declined to comment. First Republic did not immediately respond to a request for comment.