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U.S. regulators are evaluating expanding an emergency lending facility for banks that would potentially give First Republic Bank additional time to shore up its balance sheet.
An expansion of the Federal Reserve’s emergency lending plan is just one of several options being evaluated at an early stage, according to a Bloomberg report on Saturday, which cited people familiar.
Officials haven’t decided yet on what support they may give to First Republic (NYSE:FRC), Bloomberg said. Watchdogs view the bank as stable enough to operate without any immediate intervention as it works on a deal to fix its balance sheet.
Late Wednesday Fitch Ratings downgraded First Republic’s (FRC) long-term issuer default rating to B from BB late Wednesday, bringing it deeper into junk territory. On Tuesday Reuters reported that First Republic was now seeking options for how it can sell parts of its business including some of its loan book in a bid to raise cash and cut costs.
More on the Bank Crisis:
Valley National, First Citizens bid on Silicon Valley Bank – report
Deutsche Bank: The Next One To Fall?
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