The White House, Federal Reserve and Treasury are evaluating plans to save First Republic under an "open bank" rescue, according to a CNBC report.
One scenario under consideration is to create a special purpose entity, with the banks that supported First Republic (FRC) a month ago with $30 billion in deposits, to purchase the bank's "underwater" loans on its balance sheet above where they would be marked, according to CNBC's David Faber, who cited people familiar. If this occurs, First Republic (FRC) may go out and raise new equity.
