Breaking: US FDIC prepares to take over First Republic Bank

The Federal Deposit Insurance Corporation (FDIC) will be placing the First Republic Bank under imminent receivership, citing “no more time” for a private sector rescue.
The bank’s stock FRC has been crashing for more than a month, falling by 97% from $121 to $3.51 at the time of writing.
Bitcoin price, which rallied through the banking crisis in Q1, noted no significant increase, trading at $29,380.

First Republic Bank is set to be placed under receivership imminently by the Federal Deposit Insurance Corporation (FDIC). According to a report by Reuters, the information comes from an individual familiar with the takeover.

The FDIC is of the opinion that the First Republic Bank's lender's position has deteriorated and that there is no more time for the bank to pursue a rescue through the channels of the private sector.

The report comes after the bank's stock FRC continued to crash throughout this week, noting a near 71% fall since April 25. Consequently, the downfall that began on March 7 has diminished FRC's value by more than 97.5% from $121 to $3.51 at the time of writing.

The bank on April 29 continued noting a freefall, and its trading had to be halted after FRC crashed by over 43% before the stock market closed. The announcement of FDIC placing First Republic Bank under imminent receivership came less than four days after the initial reports of a potential takeover came to light.

Bitcoin price notes no change

Bitcoin price at the time of writing could be seen trading at $29,366 after recovering by more than 8% this week from the lows of $27,250. Additionally, the cryptocurrency also reclaimed its status as a “safe haven” in Q1 this year, after the biggest cryptocurrency in the world rallied by more than 50% despite the banking crisis in the United States.

BTC/USD 1-day chart

When Silvergate Bank, Silicon Valley Bank and Signature failed, it also impacted the stock markets, but Bitcoin price continued rising. Consequently, BTC also regained its status of being an “inflation hedge” asset after decoupling from the stock market earlier this year.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram