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Investing.com — Shares in regional U.S. lenders jumped in premarket trading on Monday after Bloomberg News reported over the weekend that U.S. authorities were considering giving banks more support through the expansion of an emergency lending program.
Officials are in the early stages of deliberations over the plan and expanding the Federal Reserve’s emergency lending facility is only one of many options being considered, the report said, citing sources familiar with the situation.
Although the changes would be available to any eligible user, the adjustments could be designed in a way that grants embattled lender First Republic Bank (NYSE:FRC) more time to shore up its balance sheet, Bloomberg added. Concerns have grown around First Republic since the failure of Silicon Valley Bank earlier this month, as investors focus on similarities between the size and uninsured deposit bases of the two banks.
Authorities at the U.S. Treasury and Federal Deposit Insurance Corporation, as well as First Republic, declined to comment to Reuters. The Fed did not immediately respond to a Reuters request for comment.
First Republic shares rallied by more than a fourth today, while peers PacWest Bancorp (NASDAQ:PACW) and Western Alliance Bancorporation (NYSE:WAL) also gained.
