First Republic Bank considers strategic options amidst banking crisis.

1 min read
Source: Reuters
First Republic Bank considers strategic options amidst banking crisis.
Photo: Reuters
TL;DR

Analysts at Morgan Stanley say there is a "bull case" for First Republic Bank if regulators insure customer deposits until the banking crisis ends. The optimistic case is based on a scenario in which the Federal Deposit Insurance Corporation (FDIC) insures all consumer deposits, which would spur a majority of First Republic's customers who had withdrawn their money in recent weeks to put it back into the bank, "driving a significant rebound in their deposit base." Banks involved in First Republic's rescue negotiations are asking for a loss-sharing arrangement with the U.S. government similar to the terms agreed by UBS Group in its emergency takeover of rival Credit Suisse.

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