First Republic Bank considers asset sale

First Republic Bank is considering divesting $50 billion to $100 billion in assets as it tries to extricate itself from the turmoil that gripped the sector last month. First Republic Bank, whose first-quarter earnings report revealed earlier today that it had a higher-than-expected deposit outflow, is considering divesting $50 billion to $100 billion in assets. The sales, which will include long-term mortgage-backed securities, are aimed at reducing the mismatch between the bank’s assets and liabilities, according to people familiar with the matter. A source familiar with the matter said that large U.S. banks that are among the potential buyers could be given collateral or preferred stock as an incentive to buy the assets at prices above their market value. First Republic stock had finished the day down nearly 50 percent after the earnings report was released yesterday. Shares of another mid-sized regional U.S. bank, PacWest, rose 14 percent after the close as deposit levels made investors guess.