First Republic Mulls $100 Billion Asset Sales in Revival Bid (2)

First Republic Bank is exploring divesting $50 billion to $100 billion of assets as the beleaguered lender attempts to rescue itself from the turmoil that engulfed the industry last month.

The sales, which include long-dated mortgages and securities, are aimed at reducing the mismatch between the bank’s assets and liabilities — one of the factors that has left First Republic teetering after a run on deposits in March, according to people familiar with the matter.

Potential buyers, including large US banks, could receive warrants or preferred equity as an incentive to buy assets above their market value, one of the ...