By Scott Kanowsky
Investing.com -- Shares in First Republic Bank (NYSE:FRC) shed more than a third of their value on Thursday after Bloomberg reported that the troubled lender is exploring strategic options including a sale.
Bloomberg News, citing people familiar with the matter, said the regional U.S. bank is considering different options to bolster liquidity and may become a takeover target for larger rivals.
First Republic did not immediately respond to a request for comment.
The stock has been under pressure in the wake of the failure of Silicon Valley Bank last week, with investors fretting over potential contagion from the collapse.
First Republic's credit rating was sharply downgraded by S&P Global Ratings to “junk” status earlier this week, while Moody’s said it was placing the bank under review for a potential downgrade.
Both agencies flagged growing risks of increased deposit withdrawals for the bank, and that it faces increased pressure on its profitability if it resorts to more expensive funding options than deposits.