First Republic Bank (FRC) is seeking a rescue plan as the troubled lender’s stock continues to fall and is now down 60% in the past few trading sessions.
Year to date, First Republic’s stock has declined 95% and is now trading at an all-time low of $5.69 U.S. per share.
The plunge comes after the San Francisco-based lender reported that it lost about 40% of its deposits in this year’s first quarter, raising fears of another bank failure in the U.S.
In March, Silicon Valley Bank and Signature Bank each collapsed and were taken over by the U.S. government, leading to stock market turmoil.
First Republic has said in recent days that it is reviewing its strategic options to improve its finances.
Perhaps most concerning is that the decline in deposits at First Republic came after a group of 11 larger banks injected $30 billion U.S. into the lender to stabilize it and prevent bank runs.
Advisors to First Republic are now trying to convince those banks to provide further financial support by buying some of First Republic’s assets at above-market rates.
If First Republic is successful in selling off some of its assets, it will then look to raise equity, according to officials at the lender.
So far, the U.S. government and regulators have been unwilling to intervene in the problems at First Republic Bank.
