First Republic Bank Sold to Investors

Oct 21

Written by: Steve Patterson
10/21/2009 1:42 PM

First Republic Bank Sold to Investors

The deal has been confirmed that First Republic Bank is being sold by Bank of America (BAC) to a group on investors which include the current management, Colony Capital, and General Atlantic. The bank had assets of $19 billion when it was sold as a part of Merrill Lynch in January. Banc of America was off slightly on the news today.

Merrill Lynch Purchase

First Republic was last purchased for $1.8 billion by Merrill Lynch in 2007 and is now reportedly being sold for near $1 billion. The banks wealth management division was similar to the currently owned US Trust asset under BAC ownership. Bank of America is selling assets to improve it's balance sheet at this time.

Wells Fargo and US Bancorp

Bank of America’s asset sales are occurring while other banks like Wells Fargo (WFC) and US Bancorp (USB) report earnings that are modestly higher than expectations. Wells Fargo reported a $2.6 billion profit for the third quarter even as loan losses expanded. US Bancorp reported a 4.7% profit growth for the quarter and stated that their loan loses have not grown as much as within previous quarters.

Bank of America

Bank of America missed it’s last quarterly estimate by 23.8% and has seen analysts reduce their expectations for the fourth quarter of 2009, the first quarter of 2010, and the year ending in December. BAC stock is not the strongest bank stock at this time and could experience selling pressure in the months to come.

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13 comment(s) so far...

prestiti-online

The bank of america had a huge assets $19 billion at the time of sold..it's a very important information.

By Vichitra Singh on 10/29/2009 8:37 AM

First Republic Bank Sold to Investors

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By working in norway on 11/3/2009 2:15 AM

Re: First Republic Bank Sold to Investors

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.

By First Republic Bank on 11/3/2009 4:10 AM

Re: First Republic Bank Sold to Investors

You have to really think whether it is a wise move for Bank of America to start selling assets to improve it's balance sheet in these difficult economic times. Surely it would make more sense to to divest its portfolio ?

Stephen

By Bean Bags on 11/3/2009 4:30 AM

Re: First Republic Bank Sold to Investors

Yeah I filed on Jan. 30 w/a confirmation and acceptance already, I'm scheduled for February 13th, however I'm very very uncomfortable with this Republic Bank situation? why am I being charged so much? If knew this I would've used a credit card, total rip off, I better be getting my money on time!

By web design banner on 11/3/2009 4:38 PM

Re: First Republic Bank Sold to Investors

Oh.. so saddening to watch that chart pops down. Be sure to check your bank's insurance policies.

By TryEMC - Debt Relief on 11/5/2009 1:44 AM

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Took me time to read all the comments, but I enjoyed the article.

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By buy essay on 11/5/2009 3:10 AM

Re: First Republic Bank Sold to Investors

Great article...I'm studying economics in school now, I found this very interesting.

By Relapse Prevention on 11/5/2009 1:09 PM

Re: First Republic Bank Sold to Investors

A mutual fund holds individual assets (stocks and bonds) and individual stock holders (you and me) own the shares of the fund. So, even if the broker you bought the shares from goes under, you still own the fund, not the broker.

By hosting event on 11/8/2009 11:50 PM

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