First Republic may rely on US backing to facilitate deal – Bloomberg News

This post was originally published on this site

The government could play a role in taking out assets that have eroded First Republic’s balance sheet, the report said, citing people with knowledge of the situation.

It added that other potential ideas discussed included offering liability protection, applying capital rules more flexibly or easing limits on ownership stakes.

Shares of the troubled bank were down nearly 18% in trading after the bell.

First Republic did not immediately respond to a Reuters request for comment.