First Republic Bank considers selling off some of its business, sources say

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First Republic Bank considers selling off some of its business, sources say

NEW YORK Reuters -- First Republic Bank, the U.S. regional bank struggling to remain viable despite a flight of deposits, is looking at ways to reduce its size if its attempts to raise new capital fail, according to two people familiar with the matter.

First Republic is working with JPMorgan Chase Co to find new sources of capital after a consortium of major banks provided it with $30 billion in deposits last week in a move of solidarity. Unrealized mark-to- market losses in First Republic's loan book and investment portfolio have been an obstacle toclinching an investment, according to a report by Reuters.

One of the sources said First Republic is looking at how it can sell parts of its business, including some of its loan book, in order to raise cash and cut costs. A sale of loans to other parties, including private equity firms, is one of the options under consideration, according to both of the sources.

While a sale of the entire bank remains possible, First Republic is still focused on a capital raise, according to a third source.

The situation remained fluid and asked not to be identified because of the deliberations, according to the sources. First Republic and JPMorgan didn't respond immediately to requests for comment.