Investing.com --The U.S. Federal Deposit Insurance Corporation is set to place First Republic under receivership imminently, Reuters reported Friday, citing an unnamed source.
First Republic Bank (NYSE:FRC) fell 47% in after-hours trading following the news after closing down 43% in regular trading.
The need for speed to rescue First Republic comes as the U.S. banking regulator believes that it is unlikely the beleaguered regional lender will be able to pursue a rescue through the private sector, the report said, citing the source.
First Republic and FDIC representatives didn't immediately respond to requests for comment, according to Reuters.