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JPMorgan Chase, PNC and Citizens have made bids to buy all or part of First Republic, the embattled California lender that US regulators were fighting to save over the weekend.
JPMorgan made an effort to bail out First Republic a month ago, and now that it’s no longer acting as an advisor to First Republic, the bank is free to rejoin the process as a bidder, according to a source familiar with the situation.
However, it’s not yet clear that a deal will materialize and other bidders may emerge.
The Federal Deposit Insurance Corporation, which is leading the government’s effort, had given potential bidders a 12 p.m. Eastern time deadline, but sources said it was likely the window would remain open.
People close to the situation say the government is committed to completing the First Republic sale process before the bank opens for business on Monday morning.
I still keep an eye on the following today:
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Labor Day: Financial markets in China, France, Germany, Italy, South Africa, Switzerland, UK and other countries are closed today for the May/Labor Day holiday to celebrate the achievements of labor movements.
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Consumer Confidence: Japan’s consumer confidence figures for April will be released today.
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Economic data: Australia, Canada, India, Japan and the US are releasing their S&P Global Manufacturing Purchasing Managers’ Index (PMI) numbers today.
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Visit to the White House: President Joe Biden welcomes his Philippine counterpart Ferdinand “Bongbong” Marcos Jr. to a bilateral meeting at the White House today.
Five more top stories
1. Investors bet on a shrinking stock of tech stocks, Raising concerns about the sustainability of the rally. The S&P 500 is up 8 percent so far in 2023, but just seven companies have fueled 80 percent of the gain, according to Bloomberg data.
2. Mercedes-Benz boss says breaking ties with China is ‘unthinkable’ while Europe’s largest economy grapples with its deep dependence on Beijing.
3. The Sudan crisis has potential “Worse than Ukraine” for civilians, said Amina Mohammed, Deputy Secretary General of the UN.
4. The Legacy of Inflation hits European households even if price growth slows down. According to an analysis by the Financial Times, even by the end of next year, real incomes will not return to the level they were at before the sharp rise in prices
5. Chinese factory activity declines in April as global demand for goods slowed and Communist Party leaders warned that a post-Covid recovery was yet to find solid footing.
Interview: Charlie Munger
Charlie Munger, vice chairman of Berkshire Hathaway, warned that the golden age of investing is over and investors are grappling with an era of lower returns © Houston Cofield/Bloomberg
Charlie Munger, the 99-year-old investor and sidekick of billionaire Warren Buffett, has warned of a brewing storm in the US commercial real estate market that will leave American banks “full” of “bad loans” if house prices fall. Read more about the FT interview with Charlie Munger.
We read too. . .
chart of the day
Russia’s stock market has soared to its highest level in more than a year as local retail investors with nowhere else to go buy dividend stocks that have sold off sharply in the wake of the Ukraine invasion. Read more about the surprisingly strong performance of the Moex.
Take a break from the news
Arkadi Monastery, which used to be a thriving spiritual and commercial center. Now only three monks remain © Alamy
Travel through Crete’s ancient history – without the crowds. Spring is the perfect time of year to enjoy the island’s mountains, museums and fabled monuments.
Additional contributions by Tee Zhuo And Emily Goldberg
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