First Republic auction underway. Deal seen before markets reopen

The US FDIC is holding a auction of the assets of First Republic Bank this weekend, according to a Reuters report. There are roughly six bidders for the assets, including a bid from JPMorgan.

The report says bidders were asked for non-binding bids Friday and will be studying FRC’s books over the weekend.

A deal is expected before Asian markets open.

In all likelihood a wind down of the bank will allow markets to move on but there’s also the risk that it sparks fears elsewhere or triggers trouble at another bank.