US mulls more support for banks while giving First Republic time – Bloomberg News
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 Corp (FDIC) and First Republic Bank declined to comment. The Federal Reserve did not immediately respond to a Reuters request for a comment.
U.S. banks have sought record amounts of emergency liquidity from the Federal Reserve in the past month after the failures of Silicon Valley Bank and Signature Bank.
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.
RELATED STORIES:
Banks sought record Fed liquidity in wake of SVB collapse
Bank lifelines ease global financial crisis fears
Major US banks inject $30B to rescue First Republic Bank
