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.
Representatives for the U.S. Treasury, Federal Deposit Insurance Corporation (FDIC) and First Republic Bank declined to comment. The Federal Reserve did not immediately respond to a Reuters request for a 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.
Separately, Bloomberg also reported Valley National Bancorp is vying to buy Silicon Valley Bank.
The regional bank has submitted a bid to the FDIC, the report said, citing people familiar with the matter.
The FDIC which now controls the Silicon Valley Bank assets, when asked for a comment on the report said it is not confirming or commenting on names being reported as potential bidders for SVB. Valley National Bancorp did not immediately respond to a request for comment.
First Citizens BancShares Inc, one of the biggest buyers of failed U.S. lenders, has also submitted a bid for all of Silicon Valley Bank, a source told Reuters earlier this week.
After failing to sell SVB’s private banking business alongside Silicon Valley Bank over the last two weeks, the FDIC has asked for separate offers for the bank and its private arm by March 24. It is expected to announce a winner as early as this weekend.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.