U.S. reportedly considers more support for banks while giving First Republic time to shore up balance sheet
The US Federal Reserve seal ahead of a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, US, on Wednesday, March 22, 2023.
Al Drago | Bloomberg | Getty Images
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 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 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.
