FirstFT: US regulators in talks with JPMorgan, Citizens and PNC to sell First Republic

US regulators are negotiating with at least three large banks that are bidding for all or part of First Republic, with the government determined to wrap up sales proceedings before the bank opens for business today.

The Federal Deposit Insurance Corporation, which is leading the government effort, received bids from banks including JPMorgan Chase, PNC and Citizens, according to three sources with knowledge of the situation.

Yesterday, the regulators went back to at least some of the bidders asking for reconfigured offers and more information as they compared the complex proposals, two people said. It is still not clear that a deal will get done, and other bidders could emerge.

JPMorgan, which led an effort to save First Republic a month ago, is now freed up to bid as it is no longer working as an adviser to the embattled California lender, according to a source familiar with the situation.

We’ll keep you updated with the latest on First Republic here.

Here’s what else I’m keeping tabs on today:

• May Day: Financial markets in the UK, France, Germany, South Africa, Switzerland and other countries are closed today.

• White House: President Joe Biden welcomes Philippine counterpart Ferdinand “Bongbong” Marcos Jr for a bilateral meeting after the two countries recently held their largest joint military drills in 30 years.

Five more top stories

1. Exclusive: Deutsche Bank is planning to expand its investment bank advisory team significantly and has already recruited 26 managing directors in the past two months, with several coming from collapsed rival Credit Suisse. Read the full story.

2. Exclusive: The UK is set to water down plans to force tech groups to pay compensation to victims of online financial scams, making it a voluntary agreement instead. The national fraud strategy was delayed after concerns inside the government over earlier proposals.

3. Exclusive: TotalEnergies’ Europe listing, and not its profitability, is to blame for its valuation gap with US-listed rivals, chief executive Patrick Pouyanné has told investors. But moving the company’s primary listing is not an option for the Frenchman. Here’s why.

4. The role of lawyers in the misuse of gagging clauses in England and Wales is set to be examined by the Legal Services Board. The regulator will tomorrow issue a call for evidence amid growing concerns that non-disclosure agreements are being used to silence victims of workplace misconduct.

5. The NHS is failing to ensure patients receive cutting-edge treatments as multiple hurdles including funding constraints and a conservative mindset are threatening partnerships with life sciences groups, experts said. More on why the service is struggling to innovate.

The Big Read

In the three-and-a-half years since Christine Lagarde took charge at the European Central Bank, the region’s economy has been hit by a series of calamities, including the Covid-19 pandemic and Russia’s invasion of Ukraine. While her handling of these crises has won over some naysayers, critics complain she lacks economic expertise, was late to react to soaring inflation and should communicate more clearly.

We’re also reading . . . 

Chart of the day

The costs of entrenched high inflation in the UK cannot be ignored. The Bank of England may not be able to fix everything, but it must get this under control, writes Martin Wolf.

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Take a break from the news

Travel through Crete’s ancient history — without the crowds. Spring is the perfect season to take in the island’s mountains, museums and fabled monuments.

Additional contributions by Annie Jonas