First Republic exploring up to $100B of divestitures, Bloomberg reports

First Republic Bank is exploring divesting $50B to $100B of long-dated securities and mortgages as part of a broader rescue plan to help reduce its asset-liability mismatch, Gillian Tan and Matthew Monks of Bloomberg report, citing people with knowledge of the matter. Potential buyers, including large U.S. banks, could potentially receive warrants or preferred equity as an incentive to buy assets above their market value, one source told Bloomberg. First Republic is trying to shore up its balance sheet to avoid being seized by the Federal Deposit Insurance Corp. and clear the path for a possible capital raise, the person added. The bank may need the government to facilitate negotiations, the source said. Shares of First Republic are down 29% to $11.38 in midday trading.