Silicon Valley Bank's parent company filed for Chapter 11 after the bank was placed in FDIC receivership last week.
The plan, which the banks devised with US regulators, is meant to stave off a widening panic in the wake of regulators' seizure of Silicon Valley Bank and Signature Bank over the past week.
JPMorgan, Citigroup and Bank of America are among the big banks that are part of the discussion. Details of the rescue may be announced as soon as Thursday.
Several large banks are discussing a potential deal that could include a sizable capital infusion to shore up troubled First Republic.
The bank says Fed isn’t done with hiking and sees another rate increase next week.
The bank, which is also looking at options for shoring up liquidity, is expected to draw interest from larger rivals, sources said.
Both credit assessors said further downgrades are possible as the bank faces deposit outflows that could affect its liquidity profile and ramps up wholesale borrowing.
The bank's shares fell as much as 25% to hit a record low in European trading after the remark by the chairman of Saudi National Bank.
Founder of the eponymous discount brokerage has seen his wealth drop more this year than any other US billionaire.
The firm says it has sufficient liquidity to handle any volatility and that more than 80% of deposits are insured by the FDIC.
