First Republic Bank (FRCB)

[shajandr]

First Republic seeks new ways to escape unrealized losses
Story by Reuters • Yesterday 8:19 PM

(Reuters) - First Republic Bank's efforts to secure a capital infusion continued without success on Tuesday, as the troubled regional lender started to plan for the possibility it may need to downsize or get a government backstop.

Major banks and private equity firms have so far balked at offering First Republic the capital infusion it craves for fear of realizing losses on the bank's loan book and investment portfolio amid a rise in interest rates.

https://www.msn.com/en-us/money/personalfinance/first-republic-seeks-new-ways-to-escape-unrealized-losses/ar-AA18UVaq

First Republic stock tumbles after hours as bank reportedly hires more advisers
Story by Claudia Assis • Yesterday 4:16 PM

Shares of First Republic Bank dropped about 15% in the extended session Tuesday after news that the troubled bank reportedly has hired more advisers to review its options and manage the crisis.

The Wall Street Journal reported late Tuesday that First Republic had tapped Lazard to help it review its options, and consultant McKinsey for post-crisis planning, citing people familiar with the matter. Options on the table include a sale, a capital infusion and asset sales, the sources said, according to the Journal.

Separately, Reuters reported Tuesday that the bank could downsize if a capital raise fails, and Bloomberg reported First Republic may rely on government backing to facilitate a deal to shore it up.

The bank issued “a message to our clients” late Tuesday, as its stock was falling in after-hours trading, that noted recent “unprecedented events,” and promised an update.

FRC has been on sale for two weeks and no takers. Nobody wants this debt bomb.

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