© Reuters First Republic Bank (FRC) sinks under $2 as receivership looms
Shares of First Republic Bank (NYSE:) are extending losses, down an additional 50% in the after-hours on Friday, after Reuters reported the troubled bank is set to be imminently placed under receivership by the The U.S. Federal Deposit Insurance Corporation (FDIC).
According to people familiar with the matter, the U.S. regulator believes FRC’s financial position has deteriorated to a point where there is no more time to pursue a rescue through the private sector.
If confirmed, First Republic is set to join the infamous list of US banks that have collapsed over the past few months, such as Silicon Valley Bank and Signature Bank.
FRC is down over 75% this week, following an uninspiring quarterly report, as well a rumor by CNBC that the bank is headed for receivership.
Shares are down over 97% YTD, now trading around $1.80.
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