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US mulls more support for banks while giving First Republic time, Bloomberg reports


A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike Segar/File Photo

U.S. authorities are considering the expansion of an emergency lending facility that would offer banks more support, in an effort that could give First Republic Bank (FRC.N) more time to shore up its balance sheet, Bloomberg News reported on Saturday.

All deliberations are at an early stage and an expansion of the Federal Reserve’s emergency lending program is one of the many considerations by officials to support the failing lender, the report said, citing people with knowledge of the situation.

While any changes to the Fed’s liquidity offerings would apply to all eligible users, the adjustments could be designed to ensure that First Republic benefits from the changes, Bloomberg said.

First Republic and representatives for U.S. Treasury and Fed did not immediately respond to Reuters’ request for a comment. The Federal Deposit Insurance Corporation (FDIC) declined to comment.

Earlier this month, U.S. President Joe Biden’s economic team worked with regulators to set up measures to support the banking system, including setting up a new facility to give banks access to emergency funds and making it easier for banks to borrow from the Fed in emergencies.

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