First Republic Bank Shares Sink Another 20% With Report Of Government Unwilling To Come To The Rescue

The U.S. government is unwilling to inject additional capital into First Republic Bank (NYSE:FRC), CNBC reported Wednesday, after the bank lost $100 billion in deposits during the first quarter.

The bank stock fell by almost 50% during Tuesday's session.

Government officials are unwilling to intervene in First Republic's rescue, CNBC said, citing sources who spoke with the network's David Faber.

Fox Business Networks' Charles Gasparino tweeted Tuesday that bankers working with First Republic expect eventual government receivership.

Shares of First Republic Bank were trading down another 20% on Wednesday, hitting an intraday low of $4.77 before rebounding to $6.30, and trading in the stock was halted several times on a circuit breaker.

Following the recent First Republic turmoil, investors have raised bets on a Federal Reserve pause at next week's meeting.

Fed futures currently assign a 24% probability of a Fed keeping rates on hold, according to the latest CME Group Fedwatch tool.

Chart: FRC Price Action Since April 25

Photo via Shutterstock.

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