According to sources reported by CNBC’s David Faber, JPMorgan Chase provides troubled First Republic Bank with strategic choices.
The sources indicated that one of the options might involve raising funds, which would mean reducing the current shareholders. Another option is to sell the bank.
First Republic shares fell 47% in a rough session, continuing a severe fall in March. The stock has dropped 90% so far this month.
The Wall Street Journal previously stated that Jamie Dimon, the CEO of JPMorgan, and other business leaders were collaborating to find a fix for the bank, whose shares had fallen 87% this month.
This week, JPMorgan and ten other banks revealed they would be investing a total of $30 billion in the First Republic, which had experienced significant financial withdrawals following the failure of Silicon Valley Bank. The action was intended to increase trust in First Republic and the local banking industry, but First Republic’s stock price has fallen ever since.
