JPM, Morgan Stanley in deal talks with First Republic: report

Several banks including JPMorgan Chase and Morgan Stanley are in talks with First Republic Bank for a potential deal, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The deal could involve capital infusion to bolster the troubled lender after the collapse of SVB Financial last week triggered fears of a contagion, the report said.

First Republic shares were down 26% to $22.89.

A full takeover is also a possibility, though less certain, the report added.

JPMorgan and First republic bank did not immediately respond to Reuters’ requests for comment. Morgan Stanley declined to comment.