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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.
