First Republic wants US government rescue as stock keeps falling

First Republic Bank is reportedly eager for the Biden administration to step in and facilitate a rescue of the troubled lender after customers withdrew 40% of deposits in the first quarter of this year.

Shares of First Republic Bank tumbled 30% on Wednesday — just a day after the stock price closed nearly 50% lower after the San Francisco-based lender revealed that customers withdrew $100 billion worth of deposits in the first three months of the year.

The prospects for the regional bank are looking increasingly grim as it struggles to find a buyer for all or part of the bank, according to Financial Times.

First Republic is reportedly looking to sell between $50 billion and $100 billion worth of its assets, including mortgages and securities, according to Bloomberg News.

The bank is currently burdened with an imbalance between its assets and liabilities — which is fueling the recent run on deposits, those in the know told Bloomberg.

The turmoil at First Republic is sparking speculation that federal regulators could step in with a rescue package to shore up its shaky finances.

The Biden administration is said to be on high alert over the fate of First Republic, particularly in light of the recent failures of lenders Silicon Valley Bank and Signature Bank of New York.

Biden officials are reportedly growing increasingly concerned that the bank is running out of time to reassure depositors and investors, FT is reporting.

Some options being considered are for large banks such as JPMorgan Chase, which recently led an effort among other lenders to prop up First Republic to the tune of $30 billion in an emergency investment, to step in with a rescue plan, according to FT.

Another option is for the Federal Deposit Insurance Corporation (FDIC) to take over the bank and offer a government backstop for all deposits — just as it did with Silicon Valley Bank and Signature Bank of New York, FT reported.

FT cited “a person close to First Republic” as saying that the bank would agree to the government “convening the relevant parties to come up with a solution.”

Biden officials at the White House and the Treasury as well as Federal Reserve personnel have been in touch with First Republic.

CNBC reported early on Wednesday that First Republic’s advisers have already lined up potential purchasers of new stock in the lender if they can fix the bank’s balance sheet.

The Post has sought comment from First Republic Bank.