$First Republic Bank (FRC.US)$ shares saw carnage in Tuesday's session, plummeting 49.37% after the company reported quarterly results. Its stock continued to slide 19% in trading on Wednesday
While the bank exceeded profit and revenue estimates, shares of First Republic Bank sold off after it announced an unprecedented deposit outflow of $100 billion in the quarter, excluding $30 billion in time deposits obtained from major U.S. banks.
Analysts said the quarter was marked by a dramatic decline in core deposit balances and an increased reliance on high-cost borrowings.
Latest Newsflow on FRC
First Republic Bank's situation is continually changing by the hour, with news reports provoking multiple reactions and wild price swings.
Here is the latest news impacting the stock:
Christopher Wolfe, head of North American banks at Fitch Ratings, said that First Republic Bank's options are very challenging and probably very costly, especially for shareholders.
The bank said it was "pursuing strategic options" without providing further details.
People familiar with the matter told Bloomberg the company is seeking a $100-billion asset sale to shore up balance sheet and avoid FDIC seizure.
A source close to First Republic stated the bank would welcome the government "convening the relevant parties to find a solution," but the Treasury declined to comment, according to a report published by the Financial Times.