Bank of America decided to sell First Republic private bank to a group of private equity investors. Among the participant are General Atlantic Partners and Colony Capital, are part of the deal, with First Republic Chairman and Chief Executive James Herbert part of the winning bid.

According to the official statement of BofA First Republic's current management would continue to run the bank. The transaction is scheduled for the second quarter of 2010.

Earlier, at the end of third quarter First Republic reported $19 billion in total assets, $16 billion in deposits and $15 billion in client assets under management in its wealth division.