The report from CNBC said that First Republic pitched a plan where the government would pay above-market value for bonds that First Republic holds so the bank could raise money. For now, the government isn't willing to come to the table.
The latest report doesn't appear to be taking the market by surprise with shares of FRC still down 14% premarket.'
CNBC's David Faber said that a resolution (likely FDIC receivership) is "getting close" because the chance of finding a buyer is "virtually nil". He said a buyer would have a $25B drop in book value due to HTM issues.
