Photography Magazine / iStock Editor via Getty Images
U.S. regulators are assessing the expansion of the emergency lending facility for banks, potentially giving First Bank of the Republic more time to strengthen its balance sheet.
Federal Reserve State of Emergency Extension Loan plans are just one of several options evaluated at an early stage, according to a Bloomberg report on Saturday, which quoted familiar people.
Officials have not yet decided what support they can offer to the First Republic (NYSE:FRC), Bloomberg said. Supervisors consider the bank stable enough to operate without any immediate intervention as the bank is working on a deal to fix its balance sheet.
Late Wednesday, Fitch’s Rating downgraded the First Republic (FRC) long-term issuer default rating from BB from BB late on Wednesday, yielding deeper into garbage territory. On Tuesday, Reuters reported that the First Republic is now exploring options for how it can sell parts of its business, including some of the loan books. in an effort to raise cash and cut costs.
More about Banking Crisis:
