The US FDIC is holding a auction of the assets of First Republic Bank this weekend, according to a Reuters report. There are roughly six bidders for the assets, including a bid from JPMorgan.

The report says bidders were asked for non-binding bids Friday and will be studying FRC’s books over the weekend.

A deal is expected before Asian markets open.

In all likelihood a wind down of the bank will allow markets to move on but there’s also the risk that it sparks fears elsewhere or triggers trouble at another bank.

This article was written by Adam Button at www.forexlive.com.