First Republic likely to go into receivership, bankruptcy expected
The most likely outcome for First Republic Bank is to be placed in receivership by the Federal Deposit Insurance Corporation (FDIC), CNBC reported, citing sources.
The stock was down 20% Friday after being repeatedly halted for volatility as hopes dwindled that a bailout deal would help the bank stay afloat.
First Republic shares have fallen more than 90% this year as investors lost confidence in the bank after the collapse of Silicon Valley Bank and Signature Bank in March.
The FDIC is reportedly asking other banks for potential bids to buy First Republic if the bank is seized by regulators. That said, there is still a small hope for a solution that would not involve receivership, according to the sources.
Earlier it was reported that representatives from the FDIC, the Treasury Department and the Federal Reserve are coordinating meetings with other banks to broker a rescue plan for First Republic.
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