© Reuters. FILE PHOTO: People are seen inside the First Republic Bank branch in Midtown Manhattan in New York City, U.S., March 13, 2023. REUTERS/Mike Segar
(Reuters) – Wall Street CEOs and US officials discuss intervention in Bank of the First Republic (NYSE:) are exploring the possibility of the government backing them to encourage a deal, Bloomberg News reported Tuesday, citing people with knowledge of the situation.
Among the options, the government could play a role in extracting assets from the First Republic that have eroded its balance sheet, according to the report.
Other ideas have included offering liability protection, applying capital rules more flexibly or lowering limits on ownership stakes, Bloomberg News reported.
First Republic, whose shares fell nearly 18% in aftermarket trading, declined to comment.
