FDIC Asks JPMorgan, PNC for Final First Republic Bid: Bloomberg

April 29 (Reuters) – The U.S. Federal Deposit Insurance Corp has asked banks including JPMorgan Chase & Co ( JPM.N ) and PNC Financial Services Group ( PNC.N ) to submit final bids for First Republic Bank ( FRC.N ) by Sunday. After gauging their initial interest earlier in the week, Bloomberg News reported.

The banking regulator approached banks late on Thursday seeking indications of interest, including the proposed price and estimated cost of the agency’s deposit insurance fund, the report said.

Based on those submissions on Friday, the FDIC invited at least two companies to the next stage of the auction, the report added, citing people familiar with the matter.

The FDIC said in an email: “We do not comment or confirm whether we are bidding on an open entity.”

PNC Financial declined to comment on the Bloomberg report. JP Morgan did not immediately respond to a voicemail and an email seeking comment.

The FDIC is preparing to immediately place First Republic under receivership after the regulator decided the regional lender’s condition had deteriorated and there was no time to pursue a rescue by the private sector.

The San Francisco-based lender fell into receivership, becoming the third U.S. bank to collapse since March, following the collapses of Silicon Valley Bank and Signature Bank.

Reporting by Jyoti Narayan in Bangalore Editing by Alexandra Hudson

Our Standards: Thomson Reuters Trust Principles.

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