Urgent American Talks to Save "First Republic Bank"

The Federal Deposit Insurance Corporation, the U.S. Department of the Treasury, and the Federal Reserve organized meetings with financial firms to save "First Republic Bank." Three sources indicated that U.S. officials are coordinating urgent talks to rescue the bank after private sector efforts led by the bank's advisors failed to reach an agreement so far. One source said that government involvement with the bank and its advisors in formulating a rescue plan would lead to the inclusion of other parties, including banks and private equity firms, at the negotiating table. It is unclear whether the U.S. government will participate in the private sector's efforts to save "First Republic Bank." One source stated, "The government's involvement has encouraged the bank's executives at a time when they are racing against the clock to reach an agreement that would prevent U.S. regulators from taking over." Two other sources added, "U.S. officials consider that a private sector deal to rescue the bank is preferable to having it placed under court-appointed receivership by the Federal Deposit Insurance Corporation."