Now that Bank of America Corp.'s (NYSE:BAC) acquisition of Merrill Lynch & Co. is complete and the losses have been
tallied up, the Charlotte, N.C.-based bank may
sell First Republic Bank,
a private bank it inherited in the acquisition.
Even though
The Wall Street Journal
cited Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS)
as possible buyers, some of First Republic's clients might want a say in any dealmaking.
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According to the
San Francisco Business Times, the bank's clients have suggested they could be willing to finance a deal that would allow it to remain private or allow it to operate independently.
First Republic's list of clients include CNN's Larry King, actor
Rob Lowe, record producer Quincy Jones, actress Penny Marshall,
investment banker Bill Hambrecht, private equity firm Summit Partners'
Walter Kortschak, venture firm New Enterprise Associates' Gene Trainor
and San Francisco financier
Warren Hellman. That's some pretty big heft that could muster the financing for a purchase.
Since Merrill originally purchased First Republic, which has $10 billion in deposits, for $1.8 billion in September 2007, it's not outlandish that its clients could fund First Republic's independence.
- Maria Woehr
