JPMorgan Chase& Co.,Morgan Stanley and several other big banks are discussing a potential deal with First Republic Bank that could include a sizable capital infusion to shore up the beleaguered lender, people familiar with the matter said.
First Republic is working on various potential options including a capital raise that could take various forms, the people said. A full takeover is also a possibility, though some of the people cautioned that looks unlikely at this point.
The situation is fluid and whether a deal comes together and what it might look like is still highly uncertain. Any deal would need the blessing of regulators and will be driven at least in part by the bank’s highly volatile stock. First Republic’s stock has been pummeled for days and fell another 26% Thursday morning over concerns about the bank’s health in the wake of the collapse of Silicon Valley Bank.
Should there be a deal, it could come together in the coming days, the people said.
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