Administration Considering Another Bank Bailout: Report
The Biden administration is weighing a potential deal to rescue the struggling First Republic Bank, in a bid by U.S. officials and Wall Street executives to head off the possibility of a third major bank failure, Bloomberg reported.
View Source | March 22, 2023 5:51 pm
- The U.S. government is weighing another potential deal to rescue the struggling First Republic Bank, in a bid by U.S. officials and Wall Street executives to head off the chance of a third major bank failure, Bloomberg reported, citing people with knowledge of the discussions.
- Wall Street investors have expressed an interest in helping stabilize the struggling San Francisco-based bank, which has been selling assets that lost value amid the Federal Reserve’s aggressive campaign of interest rate hikes designed to combat inflation.
- The bank, which is popular with wealthy tech executives who tend to vote Democratic, has seen its stock price fall 89% this year and its aggressive losses have caused investors to balk at rescuing the bank without government assistance, Bloomberg reported.
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