U.S. regulators are considering downgrading their assessments of First Republic Bank.
The move would limit the struggling bank's access to lending facilities from the U.S. Federal Reserve (Fed).
- The Federal Deposit Insurance Corp. (FDIC) has been giving First Republic time to resolve its financial predicament.
- The bank is seeking to offload assets as it continues to pay more to borrow money than it is making on the loans it provides.
- First Republic is also reportedly seeking to sell bonds at above-market rates to large U.S. banks as part of a rescue plan.
- The
lender has yet to strike a rescue deal, prompting regulators to
consider downgrading their assessment of its condition, reports
Bloomberg, citing people familiar with the matter.
- Officials
are considering adjusting the firm's so-called Camels rating, which
would curb its access to the Fed’s discount window.
- U.S. banks borrowed record amounts from the Fed's discount window last month as many of their customers pulled deposits.
