Days after the Silicon Valley Bank's collapse blew the lid off a global banking crisis, Signature Bank was next to bite the dust and First Republic found itself in trouble as well. Back then, 11 banks including JP Morgan Chase tried to reassure investors with a $30 billion infusion into the mid-sized First Republic, as the lender's shares tanked more than 65 per cent.
More than a month later, the US Federal Deposit Insurance Corporation is reportedly looking for buyers to save the bank, which has funds of high net-worth individuals.
Authorities step in to facilitate rescue
JP Morgan and Bank of America among others, have reportedly been invited to buy the ailing lender, hit by a spate of withdrawals.
This rescue attempt follows the Swiss regulator's successful mediation for UBS to take over its rival Credit Suisse earlier this year.
Since the beginning of the banking sector turmoil, which dealt the final blow to Credit Suisse as well, First Republic customers have pulled out $100 billion within days.
Wealthy depositors at risk
After this revelation, the value of its stocks has eroded further, and First Republic's shares are down 97 per cent in the markets so far.
Deposits of wealthy account holders are at risk in case First Republic fails to find bidders and collapses, since the FDIC only insures deposits worth $250,000.
