Several banks including JPMorgan Chase and Morgan Stanley are in talks with First Republic Bank for a potential deal, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The deal could involve capital infusion to bolster the troubled lender after the collapse of SVB Financial last week triggered fears of a contagion, the report said, adding that a full takeover is also a possibility, though less certain.
First Republic shares were up 22%, erasing earlier losses.
Other big banks involved in deal talks include Citigroup, Bank of America, Wells Fargo and Goldman Sachs, according to the report.
JPMorgan did not immediately respond to a Reuters request for comment, while Morgan Stanley and First Republic declined to comment.