New York: Before it secured financing from JPMorgan Chase & Co (JPM.N) and US authorities intervened to support the industry, First Republic Bank (FRC.N) approached at least one private equity firm about raising capital. spoke to, according to two sources with knowledge of the situation.

The talks, which were not previously reported, shed new light on the frenzied activity that followed the Silicon Valley bank failure over the weekend as other lenders under pressure looked for ways to regain investor confidence.

A third source with knowledge of the situation said First Republic had been presented with various strategies and ideas, adding that private equity firms have capital to access and are looking for opportunities.

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Additionally, discussions of a private equity deal ended once First Republic announced its line of credit with JP Morgan. First Republic was not immediately available for comment.

The US Federal Reserve and other regulators made the approach on Sunday evening before announcing a series of emergency measures to support confidence in the banking system, according to sources, reducing the urgency of reaching an agreement.

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On Sunday night, First Republic announced that it had secured additional financing through JP Morgan, bringing its total access to $70 billion in funding from various sources. Its available liquidity was increased as a result of the Fed's expanded lending capacity and JPMorgan's.

A request for comment from JP Morgan did not immediately elicit a response.

Shares of First Republic plunged more than 60% on Monday (SBNY.O), in response to concerns about a bank transition following the failure of SVB Financial Group (SIVB.O) and Signature Bank. Deposits, many of which were uninsured, fled the SVB. On Tuesday, First Republic stock gained 27%, partially offsetting some of its losses.

One of the sources claimed that other banks were also looking for capital, but any deal would probably take some time due to the administration's emergency measures and the fall in bank shares on Sunday.

In some cases, the focus shifted from investors looking for deals to banks looking for capital, one of the sources claimed. According to its annual report, the First Republic, which was founded in 1985, had $212 billion in assets and $176.4 billion in deposits at the end of last year.

Nearly 70% of its deposits are uninsured, according to a Bank of America note, which is higher than the average of 55% for mid-sized banks and third in the group behind Silicon Valley Bank and Signature Bank.

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The White House on Tuesday weighed in with a representative saying the administration was closely watching developments at First Republic and other smaller banks after steps were taken to protect depositors.

The official said that as a result of these actions, the U.S. The banking system is "now in much better shape" than it would have been otherwise, and depositors can be confident that their money will be safe.