Advisors have lined up potential purchasers of new First Republic stock - report

It looks like the big boys in the US may be called in for one last favour to First Republic. According to sources at CNBC, the supposed proposition will go something like this:

"Purchase bonds from First Republic at above-market rates for a total loss of a few billion dollars – or face roughly $30 billion in FDIC fees when First Republic fails."

We are seeing bond yields jump on the headline, with 2-year Treasury yields now up to 3.95%:

Mind you, this is just a potential good news for First Republic. It is not a guarantee whatsoever that things will play out in this manner. But for now, it seems to be providing a brief respite for risk sentiment.

/US Dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term