The U.S. Federal Deposit Insurance Corp has requested final bids for First Republic Bank (NYSE:FRC) from banks such as JPMorgan Chase & Co (NYSE:JPM) and PNC Financial Services Group (NYSE:PNC) by Sunday.
The FDIC previously asked for indications of interest, including an estimated price and cost to the deposit insurance fund, earlier in the week. The FDIC has invited at least two firms to the next stage of the bidding process based on submissions received on Friday.
First Republic is expected to be placed under receivership by the FDIC soon, as the regulator believes the lender’s position has deteriorated, and it is no longer feasible to pursue a private sector rescue. This would be the third bank in the U.S. to collapse since March, following the failures of Silicon Valley Bank and Signature Bank (OTC:SBNY).