US mulls more support for banks while giving First Republic time – Bloomberg News

(Reuters) – U.S. authorities are considering expanding an emergency lending facility that would provide more support to banks, U.S. Bloomberg News reported on Saturday. All considerations are early, and expanding the Federal Reserve’s emergency lending program is one of several factors officials are considering to support the failed lender, the report said, citing people familiar with the situation. While any changes to the Fed’s liquidity offerings will affect all eligible users, the changes could be designed to ensure that the First Republic benefits from the changes, Bloomberg said. Representatives of the US Treasury Department, the Federal Deposit Insurance Corporation (FDIC) and First Republic Bank declined to comment. The Federal Reserve did not immediately respond to Reuters’ request for comment. US banks have requested record amounts of liquidity from the Federal Reserve over the past month following the failure of Silicon Valley Bank and Signature Bank (NASDAQ:SBNY). Earlier this month, US President Joe Biden’s economic team worked with regulators to introduce measures to support the banking system, including creating a new regime to allow banks to access emergency funds and make it easier for banks to borrow from the Fed in an emergency.

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