<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">First Republic Bank’s shares plunged nearly 40 per cent on Friday as the California-based bank closed on to yet another week of the loss of the financial heft it once bossed over.&nbsp;</span>After the latest plunge, the US Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic under receivership imminently, a person familiar with the matter was quoted as saying by Reuters&nbsp;on Friday.</p>

<p data-testid="paragraph-1">The US banking regulator has decided that the troubled regional lender's position has deteriorated and there is no more time to pursue a rescue through the private sector, a source cited by Reuters states.</p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN"><o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">According to the people briefed on the matter, the First Republic Bank and its advisers were preparing to launch a private-sector solution amid the likelihood of the bank being taken over by the Federal Deposit Insurance Corporation [FDIC].&nbsp;<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">But the First Republic's proposal reportedly fell short of winning over both the private-sector US banks and the officials in Biden administration, Financial Times reported. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">The bank is now "engaged in discussions with multiple parties about [its] strategic options while continuing to serve [its] clients."<o:p></o:p></span></p>

<h3 class="MsoNormal"><strong><span lang="EN-IN" style="mso-ansi-language:EN-IN">Will Biden administration take over the First Republic Bank?</span></strong><span lang="EN-IN" style="mso-ansi-language:EN-IN"><o:p></o:p></span></h3>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">Earlier, reports said that the Biden administration was looking to avoid another FDIC takeover, weeks after it took over Silicon Valley Bank. This is because frequent takeovers of crisis-ridden banks may lead to a chain reaction of crises within the financial institutions with unhinged balance sheets.&nbsp;</span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">But the latest developments suggest otherwise. After Friday's fall at the Wall Street, the First Republic Bank may soon get taken over by the FDIC.</span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN"><o:p><strong>ALSO READ |&nbsp;</strong></o:p><o:p><a href="https://www.wionews.com/business-economy/first-republic-bank-to-cut-up-to-25-workforce-as-deposits-tumble-585828"><strong>First Republic Bank to cut up to 25% workforce as deposits tumble</strong></a></o:p><o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">Some 11 of the largest US lenders have pumped about $30 billion into First Republic Bank in an effort to stabilise it. But the bank could not attain stability despite tens of billions pumped to revive its financial health.<o:p></o:p></span></p>

<h3 class="MsoNormal"><strong><span lang="EN-IN" style="mso-ansi-language:EN-IN">First Republic Bank crisis: How bad is the situation?</span></strong><span lang="EN-IN" style="mso-ansi-language:EN-IN"><o:p></o:p></span></h3>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">The First Republic Bank’s shares have fallen 97 per cent this year. Earlier this week, on Monday, the bank revealed that it went through more than $100bn in deposit outflows in the first quarter of 2023.</span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN"><o:p><strong>ALSO WATCH |&nbsp;</strong></o:p><o:p><strong>First Republic Bank loses $100 billion in deposits</strong></o:p></span></p>

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<p>A report in the Financial Times said&nbsp;that the bank may face more hits to its prospects of profitability due to rising interest rates that have hammered the paper value of its mortgage book.</p>

<h3 class="MsoNormal"><strong><span lang="EN-IN" style="mso-ansi-language:EN-IN">First Republic Bank crisis: The options forward</span></strong><span lang="EN-IN" style="mso-ansi-language:EN-IN"><o:p></o:p></span></h3>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">First Republic's&nbsp;takeover by the Federal Deposit Insurance Corporation [FDIC] now appears to be imminent.</span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN">The Financial Times reported that one proposal floated for the First Republic’s stabilisation was for a group of banks to buy some of First Republic’s older assets at prices above their market value. That would have cleared some of its losses while the buyers could hold assets to maturity while&nbsp;avoiding to take a hit themselves.</span></p>

<p class="MsoNormal"><span lang="EN-IN" style="mso-ansi-language:EN-IN"><o:p>But the latest developments suggest that the window for implementation of such proposals has closed as the First Republic may soon get&nbsp;taken over by the&nbsp;</o:p></span>Federal Deposit Insurance Corporation.<span lang="EN-IN" style="mso-ansi-language:EN-IN"><o:p></o:p></span></p>

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First Republic Bank’s shares plunged nearly 40 per cent on Friday as the California-based bank closed on to yet another week of the loss of the financial heft it once bossed over.

First Republic Bank’s shares plunged nearly 40 per cent on Friday as the California-based bank closed on to yet another week of the loss of the financial heft it once bossed over. After the latest plunge, the US Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic under receivership imminently, a person familiar with the matter was quoted as saying by Reuters on Friday. The US banking regulator has decided that the troubled regional lender's position has deteriorated and there is no more time to pursue a rescue through the private sector, a source cited by Reuters states. According to the people briefed on the matter, the First Republic Bank and its advisers were preparing to launch a private-sector solution amid the likelihood of the bank being taken over by the Federal Deposit Insurance Corporation [FDIC]. But the First Republic's proposal reportedly fell short of winning over both the private-sector US banks and the officials in Biden administration, Financial Times reported. The bank is now "engaged in discussions with multiple parties about [its] strategic options while continuing to serve [its] clients." Will Biden administration take over the First Republic Bank? Earlier, reports said that the Biden administration was looking to avoid another FDIC takeover, weeks after it took over Silicon Valley Bank. This is because frequent takeovers of crisis-ridden banks may lead to a chain reaction of crises within the financial institutions with unhinged balance sheets. But the latest developments suggest otherwise. After Friday's fall at the Wall Street, the First Republic Bank may soon get taken over by the FDIC. ALSO READ | First Republic Bank to cut up to 25% workforce as deposits tumble Some 11 of the largest US lenders have pumped about $30 billion into First Republic Bank in an effort to stabilise it. But the bank could not attain stability despite tens of billions pumped to revive its financial health. First Republic Bank crisis: How bad is the situation? The First Republic Bank’s shares have fallen 97 per cent this year. Earlier this week, on Monday, the bank revealed that it went through more than $100bn in deposit outflows in the first quarter of 2023. ALSO WATCH | First Republic Bank loses $100 billion in deposits × A report in the Financial Times said that the bank may face more hits to its prospects of profitability due to rising interest rates that have hammered the paper value of its mortgage book. First Republic Bank crisis: The options forward First Republic's takeover by the Federal Deposit Insurance Corporation [FDIC] now appears to be imminent. The Financial Times reported that one proposal floated for the First Republic’s stabilisation was for a group of banks to buy some of First Republic’s older assets at prices above their market value. That would have cleared some of its losses while the buyers could hold assets to maturity while avoiding to take a hit themselves. But the latest developments suggest that the window for implementation of such proposals has closed as the First Republic may soon get taken over by the Federal Deposit Insurance Corporation. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

First Republic Bank nears collapse as US regulator prepares for takeover

<p>Several large banks, including JPMorgan Chase &amp; Co. and PNC Financial Services Group Inc., are reportedly interested to bid for purchasing First Republic Bank. According to reports, US banking regulator Federal Deposit Insurance Corp. (FDIC) could seize and sell First Republic bank this weekend.</p>

<p>FDIC is an independent agency created by the US&nbsp;Congress to maintain stability and public confidence in the nation’s financial system.&nbsp;</p>

<p>The announcement comes as the FDIC is getting ready to immediately put First Republic into receivership after determining there is no longer time to attempt a private sector rescue of the ailing regional lender.</p>

<p>The San Francisco-based lender would be the third American bank to fail since March if it enters receivership, after the failure of Silicon Valley Bank and Signature Bank. First Republic clients panicked and withdrew almost $100 billion in deposits in a few days of the SVB catastrophe.</p>

<p>Also Read | <a href="https://www.wionews.com/world/eu-nations-reach-deal-in-principle-to-transit-grain-from-ukraine-587170">EU nations reach deal 'in principle' to transit grain from Ukraine</a><br />
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Since then, the stock has lost around 97% of its value. The largest banks in the country, including JPMorgan and PNC, attempted to support the First Republic bank with a $30 billion deposit, but it was insufficient.</p>

<p>According to The Wall Street Journal, First Republic contemplated a sale or an outside capital infusion and recruited investment bankers to advise on its alternatives.</p>

<p>Also Read |&nbsp;<a href="https://www.wionews.com/india-news/indian-air-force-uses-night-vision-goggles-bravely-rescues-121-people-from-sudan-airstrip-587183">Indian Air Force uses night vision goggles, bravely rescues 121 people from Sudan airstrip</a></p>

<p>Additionally, a proposal to sell some of its loans, securities, or both at a premium to market value was floated. It would be the second-largest bank to collapse in the United States history, with $233 billion in assets at the end of the first quarter.</p>

<p>On Monday, First Republic presented a dreadful quarterly profits report that included fresh information on the severity of the harm caused by the deposit run.</p>

<p>The bank claimed that costly loans from the Federal Reserve and Federal Home Loan Bank were used to plug the hole left by fleeing depositors. That left the lender facing a future scenario in which it might have to pay more in liabilities than it would have made in assets.</p>

<p><strong>Watch | After Russia's winter assault, Ukraine prepares for summer attack</strong></p>

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<p>The bank's stocks dropped roughly 50% in one day. It fell further during the week, closing at $3.51 a share on Friday, down from $115 on March 8 when SVB announced its&nbsp;losses that alarmed investors.</p>

<p>Customers with balances above the $250,000 deposit insurance limit started to withdraw their money in large quantities in March out of fear for the stability of a few smaller banks, which set off turbulence in the banking industry.</p>

<p>A few days following SVB's demise, the New York-based Signature Bank went down.</p>

<p>Regulators and bankers anticipated that once the government intervened to compensate uninsured depositors at SVB and Signature, the panic had subsided. However, First Republic had few viable options due to its severely damaged balance sheet.</p>

<p>The assets and deposits of First Republic might be easily absorbed by a small number of banks. Some of them, such as Wells Fargo &amp; Co., encounter regulatory barriers to growth. Others are still processing recent bank agreements.</p>

<p>Both JPMorgan and the Pittsburgh-based PNC have a history of stepping up in times of need.</p>

<p>In 2008, JPMorgan acquired the failing Bear Stearns, and after the government seized it, it took over the activities of Washington Mutual Inc.</p>

<p>Jamie Dimon, the CEO, used his expertise in crisis management to establish himself as a statesman among bank executives. He frequently utilises his position to advise government leaders and advocate for policy changes he believes would boost the economy.</p>

<p>With support from the government, PNC acquired the struggling Cleveland-based lender National City Corp. during the financial crisis of 2008. According to the Federal Reserve, it was the sixth-largest bank in the country at the end of last year.&nbsp;</p>

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Several large banks, including JPMorgan Chase & Co. and PNC Financial Services Group Inc., are reportedly interested to bid for purchasing First Republic Bank. According to reports, US banking regulator Federal Deposit Insurance Corp.

Several large banks, including JPMorgan Chase & Co. and PNC Financial Services Group Inc., are reportedly interested to bid for purchasing First Republic Bank. According to reports, US banking regulator Federal Deposit Insurance Corp. (FDIC) could seize and sell First Republic bank this weekend. FDIC is an independent agency created by the US Congress to maintain stability and public confidence in the nation’s financial system. The announcement comes as the FDIC is getting ready to immediately put First Republic into receivership after determining there is no longer time to attempt a private sector rescue of the ailing regional lender. The San Francisco-based lender would be the third American bank to fail since March if it enters receivership, after the failure of Silicon Valley Bank and Signature Bank. First Republic clients panicked and withdrew almost $100 billion in deposits in a few days of the SVB catastrophe. Also Read | EU nations reach deal 'in principle' to transit grain from Ukraine Since then, the stock has lost around 97% of its value. The largest banks in the country, including JPMorgan and PNC, attempted to support the First Republic bank with a $30 billion deposit, but it was insufficient. According to The Wall Street Journal, First Republic contemplated a sale or an outside capital infusion and recruited investment bankers to advise on its alternatives. Also Read | Indian Air Force uses night vision goggles, bravely rescues 121 people from Sudan airstrip Additionally, a proposal to sell some of its loans, securities, or both at a premium to market value was floated. It would be the second-largest bank to collapse in the United States history, with $233 billion in assets at the end of the first quarter. On Monday, First Republic presented a dreadful quarterly profits report that included fresh information on the severity of the harm caused by the deposit run. The bank claimed that costly loans from the Federal Reserve and Federal Home Loan Bank were used to plug the hole left by fleeing depositors. That left the lender facing a future scenario in which it might have to pay more in liabilities than it would have made in assets. Watch | After Russia's winter assault, Ukraine prepares for summer attack × The bank's stocks dropped roughly 50% in one day. It fell further during the week, closing at $3.51 a share on Friday, down from $115 on March 8 when SVB announced its losses that alarmed investors. Customers with balances above the $250,000 deposit insurance limit started to withdraw their money in large quantities in March out of fear for the stability of a few smaller banks, which set off turbulence in the banking industry. A few days following SVB's demise, the New York-based Signature Bank went down. Regulators and bankers anticipated that once the government intervened to compensate uninsured depositors at SVB and Signature, the panic had subsided. However, First Republic had few viable options due to its severely damaged balance sheet. The assets and deposits of First Republic might be easily absorbed by a small number of banks. Some of them, such as Wells Fargo & Co., encounter regulatory barriers to growth. Others are still processing recent bank agreements. Both JPMorgan and the Pittsburgh-based PNC have a history of stepping up in times of need. In 2008, JPMorgan acquired the failing Bear Stearns, and after the government seized it, it took over the activities of Washington Mutual Inc. Jamie Dimon, the CEO, used his expertise in crisis management to establish himself as a statesman among bank executives. He frequently utilises his position to advise government leaders and advocate for policy changes he believes would boost the economy. With support from the government, PNC acquired the struggling Cleveland-based lender National City Corp. during the financial crisis of 2008. According to the Federal Reserve, it was the sixth-largest bank in the country at the end of last year. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

JPMorgan Chase, PNC bid for distressed First Republic as part of FDIC takeover

<p>The First Republic Bank’s shares continued to plunge on Tuesday as financial regulators scrambled to come up with a plan to stabilise the financial&nbsp;health of the bank.</p>

<p>The California-based lender’s stock price is now down by more than 90 per cent this year. It fell by a further 50 per cent a day after it was reported that the customers has withdrawn $100bn of deposits during last month’s turmoil led by Silicon Valley Bank’s collapse.</p>

<h2><strong>What the First Republic is saying?</strong></h2>

<p>The First Republic said on Monday that it was considering “strategic options” as it announced the firing of up to 25 per cent of its workforce. However, a report in the Financial Times citing people briefed on the matter, said that the bank is struggling to come up with a solution.</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/first-republic-bank-to-cut-up-to-25-workforce-as-deposits-tumble-585828">First Republic Bank to cut up to 25% workforce as deposits tumble</a></strong></p>

<p>Meanwhile, Washington remains on alert following the collapse of Silicon Valley Bank and Signature Bank last month.</p>

<h2><strong>First Republic crisis: What can the US government do?</strong></h2>

<p>The leading options involve large US banks rescuing the First Republic by injecting more money. Or the Federal Deposit Insurance Corporation can take control of the bank while offering a government-sponsored guarantee for all deposits. The Biden administration is reportedly becoming increasingly concerned that First Republic is running out of time to assure depositors and investors that it stands on solid financial ground, the&nbsp;Financial Times report added.</p>

<p><strong>ALSO WATCH |&nbsp;<a href="https://www.wionews.com/business-economy/first-republic-bank-to-cut-up-to-25-workforce-as-deposits-tumble-585828">First Republic Bank loses $100 billion in deposits</a></strong></p>

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<p>But there are signs that the US government is not much concerned about a supposed expansion of the First Republic crisis into a wider banking sector.</p>

<p>On Tuesday, the KBW regional bank index was down less than 4 per cent despite a massive dip recorded by the First Republic Bank.</p>

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The First Republic Bank’s shares continued to plunge on Tuesday as financial regulators scrambled to come up with a plan to stabilise the financial health of the bank.

The First Republic Bank’s shares continued to plunge on Tuesday as financial regulators scrambled to come up with a plan to stabilise the financial health of the bank. The California-based lender’s stock price is now down by more than 90 per cent this year. It fell by a further 50 per cent a day after it was reported that the customers has withdrawn $100bn of deposits during last month’s turmoil led by Silicon Valley Bank’s collapse. What the First Republic is saying? The First Republic said on Monday that it was considering “strategic options” as it announced the firing of up to 25 per cent of its workforce. However, a report in the Financial Times citing people briefed on the matter, said that the bank is struggling to come up with a solution. ALSO READ | First Republic Bank to cut up to 25% workforce as deposits tumble Meanwhile, Washington remains on alert following the collapse of Silicon Valley Bank and Signature Bank last month. First Republic crisis: What can the US government do? The leading options involve large US banks rescuing the First Republic by injecting more money. Or the Federal Deposit Insurance Corporation can take control of the bank while offering a government-sponsored guarantee for all deposits. The Biden administration is reportedly becoming increasingly concerned that First Republic is running out of time to assure depositors and investors that it stands on solid financial ground, the Financial Times report added. ALSO WATCH | First Republic Bank loses $100 billion in deposits × But there are signs that the US government is not much concerned about a supposed expansion of the First Republic crisis into a wider banking sector. On Tuesday, the KBW regional bank index was down less than 4 per cent despite a massive dip recorded by the First Republic Bank. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

First Republic Bank crisis deepens as shares plunge 50 per cent with sharp sell off

<p>San Francisco-headquartered First Republic Bank is slashing its workforce by up to 25 per cent, reflecting wider after-effects of March's Silicon Valley Bank crisis&nbsp;in the United States. The customer deposits decreased by a whopping 41 per cent to $104.5 billion in the first quarter missing its $137 billion target, Bloomberg reported.&nbsp;</p>

<p>In response to the "unprecedented" outflow of deposits, the company, other than layoffs, is also weighing&nbsp;unspecified strategic options as it works to reinforce its dominant&nbsp;position in the United States.</p>

<p>Between the end of March and April 21, deposits slipped just 1.7 per cent. This, the company said, means that the&nbsp;customer activity has largely been stable.</p>

<p>"Though we faced challenges and uncertainties with the stabilization of our deposit base and the strength of our credit quality and capital position, we continue to take steps to strengthen our business,"&nbsp;Chief Executive Officer Mike Roffler is reported to have said on a conference call.&nbsp;</p>

<p>The company has retained 90 per cent&nbsp;of its wealth professionals and remains "fully committed" to the business, Roffler added.</p>

<p>The company said that the&nbsp;uninsured deposits would remain a smaller part of its total deposit base. It also plans to moderate loan volumes and will now focus on originating loans that can be sold on the secondary market.</p>

<p>"We intend to retain servicing on these loans as we always have so that we remain the primary point of contact for our clients,"&nbsp;Roffler said on the call. "Through these actions we intend to reduce the size of our balance sheet, reduce our reliance on short-term borrowings and address the challenges we continue to face."</p>

<p>First Republic shares fell 12 per cent&nbsp;in late New York trading.&nbsp;</p>

<h2><strong>What is happening at the First Republic Bank?</strong></h2>

<p>Last month,&nbsp;the United States government took the "receivership" of&nbsp;the collapsed Silicon Valley Bank,&nbsp;after a sale of available-for-sale securities stokes a massive outflow of the depositors.</p>

<p>The crisis put a spotlight on banks sitting on large piles of unrealised and often unreported&nbsp;losses on their balance sheets, First Republic Bank one amongst&nbsp;them.</p>

<p><strong>ALSO WATCH |&nbsp;Regulators help First Republic Bank get a $30 billion bailout</strong></p>

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<p>Bloomberg reported that the First Bank executives considered a sale of the entire bank. The large unrealised losses have caused some buyers to not consider a buyout of the bank at all, the report added.</p>

<p>Founded in 1985, First Republic has expanded its wealth-management services and related offerings for the ultra-rich over the decades.</p>

<p>But in recent weeks, a number of its&nbsp;advisers have left for the rivals, Bloomberg reported.&nbsp;</p>

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San Francisco-headquartered First Republic Bank is slashing its workforce by up to 25 per cent, reflecting wider after-effects of March's Silicon Valley Bank crisis in the United States.

San Francisco-headquartered First Republic Bank is slashing its workforce by up to 25 per cent, reflecting wider after-effects of March's Silicon Valley Bank crisis in the United States. The customer deposits decreased by a whopping 41 per cent to $104.5 billion in the first quarter missing its $137 billion target, Bloomberg reported. In response to the "unprecedented" outflow of deposits, the company, other than layoffs, is also weighing unspecified strategic options as it works to reinforce its dominant position in the United States. Between the end of March and April 21, deposits slipped just 1.7 per cent. This, the company said, means that the customer activity has largely been stable. "Though we faced challenges and uncertainties with the stabilization of our deposit base and the strength of our credit quality and capital position, we continue to take steps to strengthen our business," Chief Executive Officer Mike Roffler is reported to have said on a conference call. The company has retained 90 per cent of its wealth professionals and remains "fully committed" to the business, Roffler added. The company said that the uninsured deposits would remain a smaller part of its total deposit base. It also plans to moderate loan volumes and will now focus on originating loans that can be sold on the secondary market. "We intend to retain servicing on these loans as we always have so that we remain the primary point of contact for our clients," Roffler said on the call. "Through these actions we intend to reduce the size of our balance sheet, reduce our reliance on short-term borrowings and address the challenges we continue to face." First Republic shares fell 12 per cent in late New York trading. What is happening at the First Republic Bank? Last month, the United States government took the "receivership" of the collapsed Silicon Valley Bank, after a sale of available-for-sale securities stokes a massive outflow of the depositors. The crisis put a spotlight on banks sitting on large piles of unrealised and often unreported losses on their balance sheets, First Republic Bank one amongst them. ALSO WATCH | Regulators help First Republic Bank get a $30 billion bailout × Bloomberg reported that the First Bank executives considered a sale of the entire bank. The large unrealised losses have caused some buyers to not consider a buyout of the bank at all, the report added. Founded in 1985, First Republic has expanded its wealth-management services and related offerings for the ultra-rich over the decades. But in recent weeks, a number of its advisers have left for the rivals, Bloomberg reported. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

First Republic Bank to cut up to 25% workforce as deposits tumble