JPMorgan, Morgan Stanley amongst banks in deal talks with First Republic – WSJ

(Reuters) -A number of banks together with JPMorgan Chase & Co (NYSE:) and Morgan Stanley (NYSE:) are in talks with First Republic Financial institution (NYSE:) for a possible deal, the Wall Avenue Journal reported on Thursday, citing individuals aware of the matter.

The deal might contain capital infusion to bolster the troubled lender after the collapse of SVB Monetary final week triggered fears of a contagion, the report mentioned, including {that a} full takeover can be a chance, although much less sure.

First Republic shares have been down practically 17% at $26.08 earlier than being halted.

Different huge banks concerned in deal talks embody Citigroup Inc (NYSE:), Financial institution of America Corp (NYSE:), Wells Fargo (NYSE:) and Goldman Sachs Group Inc (NYSE:), in accordance with the report.

JPMorgan didn’t instantly reply to a Reuters request for remark, whereas Morgan Stanley and First Republic declined to remark.

The rescue is being orchestrated by the U.S. authorities, Bloomberg Information reported on Thursday, citing individuals with information of the matter.

A deal could possibly be introduced as early as Thursday, each the reviews mentioned.

First Republic has been scrambling for added sources of funding to remain afloat. On Sunday, the California-based lender raised capital from JPMorgan and mentioned it was capable of meet withdrawal requests.

That, nonetheless, has didn’t calm jittery traders. On Wednesday, rankings company Fitch downgraded First Republic, citing dangers to its liquidity.