first republic bank 590928

Today, the fate of another American bank awaiting rescue may be decided

During the weekend, there were already reports that the most likely scenario is that First Bank will also have to be saved by the American state. At the same time, the authorities have not given up yet, they are waiting for offers from interested parties until Sunday after depositors’ and investors’ confidence in the financial institution was shaken again this week.

According to a Bloomberg article Democrat Representative Ro Khanna spoke on CBS about the FDIC’s mandate to choose the least-cost solution. According to him, this means that negotiations with other banks and other representatives of private capital on the possible sale of First Republic must be continued.

Gary Cohn, an economic adviser to former President Donald Trump who is now a vice chairman of IBM, said he expected some kind of announcement from the FDIC after the bids were received before the opening of Asian markets on Monday. According to him, it is most likely that the deposit insurance company will take control of First Republic and then start selling its more valuable assets at the same time.

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