Wall Street leaders and US officials are in talks on intervention First Republic Bank FRC are reportedly considering the possibility of government support to incentivize a deal.
The group has taken several measures to make the lender more attractive to potential investors, informed of Bloomberg.
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The report said that among the options, the government could help lift First Republic Bank’s assets, which have strained its balance sheet. The report quoted sources as saying that other ideas include offering liability protection, imposing more flexible capital rules, or easing limits on ownership stakes.
concerns: While investors have shown interest, the unrealized losses of lenders have been a cause of concern. Although talks are on, many issues remain unresolved and agreement is not guaranteed, the report said. It is also not clear how the government will provide any financial support.
During this, JPMorgan Chase CEO Jamie Dimon is leading talks with other leaders of major banks to resolve the crisis. Wall Street sees a return to investor optimism after Treasury Secretary Janet Yellen Tuesday offered some reassurance for the US banking system while the Treasury Department considers options for temporarily guaranteeing deposits. Above and beyond the FDIC limit of $250,000.
SPDR S&P 500 ETF Trust Spy closed 0.96% higher and Invesco QQQ Trust Series 1 QQQ increased 0.35%. the focus has now shifted to federal Reserve Policy where the bulk of the market participants get results The central bank is expected to hike rates by 25 bps.
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