Former Trump economic adviser Gary Cohn said on Sunday that the anticipated sale of First Republic Bank would be a “much quicker process” than that of Silicon Valley Bank.
“The most likely possibility is that the FDIC will seize control and simultaneously resell the assets to the winning bidder. I think that will happen this afternoon before markets open in Asia,” Cohn said. said on CBS’s “Face the Nation.”
“It’s going to be a much quicker process,” Mr. Cohn said, compared to Silicon Valley Bank, which collapsed last month in the biggest bank failure since the 2008 financial crisis.
government regulators Reportedly seized and then sold First Republic Bank on Sunday.
“We have been going through this process for the past two weeks or so now as First Republic continues to come under pressure and continue to lose deposits. We reported that the deposits had flowed out,” Cohn said.
The New York Signature Bank collapsed shortly after Silicon Valley, making it the third largest bank failure in U.S. history. Governments are now scrambling to quell concerns, reduce confidence in the banking system, and prevent further crises.
At the close of business on Friday, Cohn said the FDIC was “in the process of looking for an asset acquirer or bidder over the weekend,” and the FDIC “has reached out to potentially three banks for a final decision.” added. Bank-wide bids. “
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