Why No Buyer Has Emerged for First Republic

If another bank bought First Republic Bank for a single dollar, it could still end up costing that buyer tens of billions.

For many years, First Republic had a sterling reputation as a fast-growth lender focused on a very desirable clientele—the affluent. One might think that such a franchise would fit well with any number of banks looking to grow businesses like wealth management. Its assets are also seemingly mostly solid ones, like government securities and mortgages extended to those well-off clients. Yet with the bank’s market value now hovering at around $1 billion, down about 95% from the start of the year, no buyer has emerged.