The Uncertain Fate of First Republic Bank Amidst Bailouts and Stock Plunge

First Republic Bank is in a standoff between the US government and its largest rivals, with both sides hoping to avoid steep losses and waiting for the other to save the troubled firm. Regulators have so far refrained from stepping in, betting that banks that deposited $30 billion into First Republic last month can hash out a deal to ensure the firm doesn’t fail and take some of their money with it. The bank’s issues stem from its stockpile of loans at low interest rates, including an unusually large portfolio of jumbo mortgages to wealthy clients, which have lost value amid Federal Reserve hikes, prompting some depositors to yank their money.