The US Federal Deposit Insurance Corporation (FDIC) is pushing towards a sale of troubled First Republic Bank as the deadline for a deal is looming. JPMorgan Chase, PNC Financial Services Group, and Citizens Financial Group have submitted bids to procure the ailing lender, according to multiple media houses, but a decision has yet to be finalized.

The Collapse of First Republic Bank

Neither the FIDC nor the first Republic Bank formally announced the submission of biddings, and the process is ongoing behind closed doors. Bank of America Corp. and US Bancorp were also invited for the bidding, but both decided to refrain from participating.

The FIDS accepted the bidding until Sunday afternoon and has been asking follow-up questions to at least some of the bidders. If no agreements are reached, the FIDC will be forced to take over First Republic Bank and put it under receivership, and depositors up to $250,000 will only be deposited if the government steps in with a bailout package.

First Republic lured a large chunk of high-net-worth customers with preferential rates on mortgages and loans, and as such, 68 percent of its depositors are uninsured.

JP Morgan already holds over 10 percent of US bank deposits, a threshold under the country's federal laws. However, the limit is exempted in the event of the acquisition of a failed bank.

American Banking Crisis

The collapse of First Republic occurred two months after two major American banks, Silicon Valley Bank and Signature Bank, went under FIDC receivership, and another, Silvergate Bank, announced voluntary liquidation.

First Republic was founded in 1985 and was acquired by Merrill Lynch in 2007. The bank's shares were again listed publicly as Merrill's owner, Bank of Amerca, sold it following the 2008 financial crisis.

San Francisco-based First Republic Bank's troubles started earlier this year with the crisis in other banks. Then, the bank received a $30 million lifeline from a consortium of 11 large banks, including JPMorgan Chase, PNC, and Bank of America. However, that turned out to be ineffective.

In its latest financials, First Republic disclosed that its customers withdrew $102 million in just three weeks in March. The outflow was over $176 million by the end of last year.

On Friday, the publicly listed shares of First Republic tanked as the bank's value plummeted from $20 billion to $557 million. The investors' sentiment clearly showed distrust of the bank's performance, pushing it towards a collapse.