According to reports, US regulators are evaluating emergency loan tools to expand the banking sector, which may give$First Republic Bank (FRC.US)$More time to solidify its balance sheet. People familiar with the matter revealed that expanding the support of the Federal Reserve is one of several options to be weighed at an early stage.
The report said that the regulatory authorities are still processing$SVB Financial (SIVB.US)$with$Signature Bank (SBNY.US)$), they now need more attention. Officials have yet to decide what kind of support to First Republic Bank. Regulators believe the bank is stable enough to operate without any immediate intervention, as the bank is struggling to resolve its balance sheet issues.
According to information, Fitch Ratings downgraded First Republic Bank's long-term issuer default rating from “BB” to “B” last Wednesday. Meanwhile, last Tuesday, there were reports that First Republic Bank is seeking a plan to sell part of its business (including some loans) to raise cash and reduce costs.
Editor/phoebe