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The Telegraph
The Telegraph
28 Apr 2023


A First Republic Bank branch in Midtown Manhattan in New York
A First Republic Bank branch in Midtown Manhattan in New York Credit: REUTERS/Mike Segar

US officials are understood to be coordinating urgent talks to rescue First Republic Bank after efforts by private sector banks failed to reach a deal so far.

The Federal Deposit Insurance Corporation (FDIC), the Treasury Department and the Federal Reserve are among the government bodies that have started to orchestrate meetings in recent days about pulling together a lifeline for the regional lender, according to Reuters.

The government's involvement is reportedly helping bring more parties, including banks and private equity firms, to the negotiating table.

It is unclear whether the US government is considering participating in a private-sector rescue of First Republic. 

The bank's shares have lost 95pc of their value since it found itself at the heart of the regional banking crisis in March following the collapse of Silicon Valley Bank and Signature Bank.

Wall Street banks have been trying to find a solution for First Republic since 11 of the biggest US lenders deposited $30bn (£24bn) at the bank on March 16 to fend off a regional banking crisis.

First Republic said in a statement: "We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients."

Read the latest updates below.

Good morning

First Republic Bank rescue talks now involve the likes of the Federal Deposit Insurance Corporation (FDIC), the Treasury Department and the Federal Reserve.

US officials are holding urgent talks on the future of the bank after private sector banks were so far unable to come up with a solution to save the stricken regional lender, according to Reuters.

The bank has been under stress since the banking crisis in March triggered by the collapse of Silicon Valley Bank and Signature Bank.

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What happened overnight 

Shares advanced in Asia after Wall Street rallied to its best day since January and the Bank of Japan kept its ultra-lax monetary policy unchanged.

In its first policy meeting under its new governor, Kazuo Ueda, the BOJ kept its key policy rate at minus 0.1pc even as Japan reported inflation excluding volatile fresh food costs was at 3.5pc in March.

Japan's central bank has overshot its inflation target of 2pc, but expects conditions to worsen since the US and other major economies are thought to be headed for recession.

Tokyo's Nikkei 225 index added 1.3pc to 28,822.96 and the Hang Seng in Hong Kong gained 0.6pc to 19,959.93

The Shanghai Composite index surged 0.7pc to 3,309.46, while the S&P/ASX 200 in Sydney edged 0.2pc higher to 7,306.30.

The Kospi in Seoul edged 0.1pc higher, to 2,498.32. India's Sensex added 0.1pc and benchmarks in Southeast Asia fell.

All three major US stock indexes surged in a broad rally, with megacap tech and tech-related companies boosting the Nasdaq to its biggest one-day percentage gain since mid-March.

All three major indices finished solidly higher, with the tech-rich Nasdaq Composite Index jumping 2.4pc to 12,142.24.

The Dow Jones Industrial Average climbed 1.6pc to 33,826.16, while the broad-based S&P 500 gained 2.0pc to 4,135.35.

Upbeat quarterly results from Facebook-owner Meta, following similarly strong earnings from Microsoft, Google-parent Alphabet added fuel to the rally.