Citizens Financial Group Inc CFG.N, PNC Financial Services Group PNC.N and JPMorgan Chase & Co JPM.N are among those vying for First Republic FRC.N in an auction process led by the Federal Deposit Insurance Corporation of United States (FDIC), according to sources. US Bancorp is another of the entities that the FDIC asked to submit an offer, according to Bloomberg.
Guggenheim Securities is advising the FDIC, according to two sources familiar with the situation.
The FDIC process began this week, according to three of the sources, and bidders were asked to submit non-binding offers by Friday and studied First Republic’s books over the weekend, one of the sources said.
A deal is expected to be announced on Sunday night, before Asian markets open, and the regulator is likely to say at the same time that it has seized the lender, three of the sources said.
US Bancorp did not immediately respond to a request for comment. First Republic, the FDIC, Guggenheim and the other banks declined to comment.
The eventual deal would close less than two months after Silicon Valley Bank and Signature Bank failed amid a run on deposits from US banks, forcing the Federal Reserve to intervene with emergency measures to stabilize markets. .
Although markets have calmed since then, a First Republic deal would be closely watched by the amount of support the government has to provide.
