© Reuters. FILE PHOTO: A First Republic Financial institution department is pictured in Midtown Manhattan in New York Metropolis, New York, U.S., March 13, 2023. REUTERS/Mike Segar/File Picture
(Reuters) -U.S. authorities are contemplating the growth of an emergency lending facility that may provide banks extra assist, in an effort that might give First Republic Financial institution (NYSE:) extra time to shore up its stability sheet, Bloomberg Information reported on Saturday.
All deliberations are at an early stage and an growth of the Federal Reserve’s emergency lending program is without doubt one of the many issues by officers to assist the failing lender, the report mentioned, citing folks with data of the state of affairs.
Whereas any modifications to the Fed’s liquidity choices would apply to all eligible customers, the changes may very well be designed to make sure that First Republic advantages from the modifications, Bloomberg mentioned.
Representatives for the U.S. Treasury and the Federal Reserve didn’t instantly reply to Reuters’ request for a remark. The Federal Deposit Insurance coverage Company (FDIC) and First Republic Financial institution declined to remark.
Earlier this month, U.S. President Joe Biden’s financial workforce labored with regulators to arrange measures to assist the banking system, together with organising a brand new facility to provide banks entry to emergency funds and making it simpler for banks to borrow from the Fed in emergencies.
