CNBC's David Faber reporting that First Republic Bank is more likely to head into FDIC receivership this weekend then find a way to strike a private sector deal.
From receivership, there are banks who are lining up to take it from there.
The shares of FRC are being crushed on this and that's spread somewhat to broader US indicies. What's striking for me is that earlier, Faber reported virtually the same thing, only he was less explicit about it.
It goes to show you that there are always opportunities for anyone paying attention.
Here's a Goldman Sachs note about the effects of banking stress on the real economy:
Although banking stress "may be behind us, the market still doesn’t have clarity on the growth drag .. I’m of the instinct that impingement on the provision of bank credit will slowly, if almost imperceptibly, feed through."
Our team "still assumes that a moderate tightening of credit will take the form of a slower-motion credit crunch, which shaves 40 bps of US GDP in 2023. I’m certainly hoping this proves to be correct, as it would be a very tidy outcome."
h/t @carlquintanilla
