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So What's With First Republic Bank?

Bank of America says it will sell First Republic Bank, but BofA assures the public that the purpose of the sale is not to meet the government’s capital requirements. The San Francisco Chronicle reports that in May the government ordered Bank of America to raise $34 billion after it conducted a stress test.

Bank of America says it had raised $40 billion by July. Bank of America is selling First Republic Bank to a group of investors. In the group are First Republic’s management and funds managed by Colony Capital and General Atlantic.


Bank of America is selling First Republic Bank, one of the holdings of Merrill Lynch when acquired from Bank of America. It's thought that the asking price for the West Coast based bank chain will be around $1 billion.

First Republic Bank was bought by Merrill Lynch in late 2007, and specializes in day to day banking, lending, and wealth management, and as Lynch was acquired by Bank of America at the last second to save it (that whole fiasco), First Republic went to B of A. It's being sold to the Republic corporate board and other shareholders. It may be that First Republic Bank, unlike it's soon to be former parent, may not need any debt consolidation.

Update our Open Coffee Club of what is the real situation in our community.

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