(Adds response from FDIC, details from report)
April 26 (Reuters) - U.S. bank regulators are weighing
the prospect of downgrading their private assessments of First
Republic Bank , which could lead it to face potential
curbs on borrowing from the Federal Reserve, Bloomberg News
reported on Wednesday.
Senior officials are mulling 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.
The banking sector has come under renewed pressure after
First Republic on Monday reported outflows of more than $100
billion in deposits in the first quarter.
Its 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 Federal Deposit Insurance Corporation (FDIC) has not
reached a decision nor have officials warned the lender about
their thinking while waiting on the bank's managers to shore up
its balance sheet, the report said.
First Republic did not immediately respond to a Reuters
request for comment, while the FDIC declined to comment.
The lender is planning to shrink its balance sheet and slash
expenses by cutting executive compensation, paring back office
space, and laying off nearly 20% to 25% of employees in the
second quarter, it said Monday.
(Reporting by Juby Babu in Bengaluru; Editing by Arun Koyyur)
