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After stock market slump, the United States pushes for First Republic rescue with big banks

Jeenah Moon/Bloomberg After the collapse of First Republic Bank’s shares, the U.S. government is trying organize a rescue with the help of the nation’s largest banks. A spokesperson for San Francisco-based First Republic declined to comment. The potential deal could include a substantial capital infusion to help the California lender. According to people familiar with the matter, First Republic was looking at potential options, including a capital raise. Although a complete takeover is possible, some people believe that it is unlikely at this stage. First Republic stock plunged 36% on Thursday. Bloomberg News reported that the bank is looking at strategic options, including a sale. This was expected to attract interest from larger competitors, late Wednesday. After regulators took out Signature Bank and Silicon Valley Bank, the bank’s shares plunged. Bloomberg News reported that First Republic is now exploring strategic options including a sale. First Republic specializes in private banking and wealth administration and has tried to distinguish itself from the Silicon Valley Bank of SVB Financial Group. First Republic Bank is working with JPMorgan to help it overcome its difficulties. This is in contrast to SVB, which included venture and startups as its largest clients. First Republic Bank said that it had “further enhanced” and “diversified its financial position” through the Federal Reserve Bank’s and JPMorgan’s liquidity. This was on Sunday, the same day Signature Bank was reorganized by regulators.