Even When Facing Collapse, First Republic Bank Still Fought Against Stronger Regulations

After bailing out Silicon Valley Bank, the federal government is considering the rescue of First Republic Bank. But just two months ago, First Republic pressured regulators not to adopt rules to minimize the risk of government bailouts for insolvent banks.

After Silicon Valley Bank's Failure, Regional Banks Face Greater Scrutiny

Exterior view of a First Republic Bank branch on March 13, 2023 in West Palm Beach City, Florida. (Joe Raedle / Getty Images)


After bailing out Silicon Valley Bank last week, the federal government is reportedly considering the rescue of a second struggling institution whose deposits are largely uninsured. But just two months ago, that bank, San Francisco–based First Republic, pressured regulators not to adopt new rules to minimize the risk of government bailouts for insolvent banks, calling such enhanced regulation “unnecessary.”

First Republic Bank is best-known for its role at the center of a major Donald Trump scandal. Its board of directors includes major Trump donor and ally Tom Barrack, who is reportedly spearheading efforts to save the company.

Only months before the rescue talk began, the bank waged a battle to deter federal banking regulators from considering stronger measures to prepare for the potential failures of regional banks like First Republic.

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