The potential First Republic rescue plan is the latest twist in a saga sparked by the sudden collapse of Silicon Valley Bank last month.
after CEO Michael Roffler opted not to take any questions after a brief 12-minute conference call.
To help a deal happen, advisors may offer warrants or preferred stock so that banks involved in the rescue can reap some of the upside of saving First Republic, the sources said.For years, First Republic was the envy of peers as its focus on rich Americans helped turbocharge growth and allowed it to poach talent. But that model broke down in the aftermath of the SVB failure as its wealthy customers quickly pulled uninsured deposits.
First Republic loaded up on low-yielding assets including Treasurys, municipal bonds and mortgages, making what was essentially a bet that interest rates wouldn't rise. When they did, the bank found itself with tens of billions of dollars in losses.
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