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April 26 (Reuters) – U.S. bank regulators are weighing the prospect of downgrading their private assessments of First Republic Bank (FRC.N), which could lead it to face potential curbs on borrowing from the Federal Reserve, Bloomberg News reported on Wednesday.
FRC did not immediately respond to a Reuters request for comment.
Senior officials are increasingly weighing whether to downgrade their scoring of the firm’s condition, including its so-called Camels rating, the report said citing people, adding that would likely limit the bank’s use of the Fed’s discount window and an emergency facility launched last month.
First Republic’s market value plunged below $1 billion for the first time ever on Wednesday after a report said the U.S. government was unwilling to intervene in the rescue process, hammering the lender’s stock.
The banking sector has come under renewed pressure following First Republic’s results on Monday after it reported outflows of more than $100 billion in deposits in the first quarter.
Reporting by Juby Babu in Bengaluru
Our Standards: The Thomson Reuters Trust Principles.
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