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The
government's involvement is helping bring more parties,
including banks and private equity firms, to the negotiating
table, one of the sources told Reuters.
Wall Street banks have been trying to find a solution for the
beleaguered lender following last month's collapse of two
regional lenders that prompted some of the biggest U.S. banks to
deposit $30 billion at First Republic.
"The potential worst-case scenario stemming from the collapse of
Silicon Valley Bank appears to have been averted," said Mark
Haefele, chief investment officer at UBS Global Wealth
Management in a note.
"But the problems at First Republic are a reminder that further
problems remain possible."
First Republic shares hit a record low this week after it said
deposits slumped by more than $100 billion in the first quarter.
The San Francisco-based lender's stock has more than halved so
far this week. Since the start of the year, it has lost nearly
95% of its value, making it the worst performing S&P 500 stock.
Meanwhile, the Federal Reserve is set to publish an internal
review of its supervision of Silicon Valley Bank on Friday,
April 28 at 11 a.m. ET (1500 GMT).
(Reporting by Medha Singh in Bengaluru; Editing by Saumyadeb
Chakrabarty)
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