Per CNBC

First Republic shares dropped yet again by almost 50% as it was halted several times due to volatility. Now, CNBC's David Faber received word from sources that the bank was likely headed for receivership by the FDIC.

For this year alone, First Republic's stock has already fallen by over 90% as investors lost confidence. So far, the bank told Faber that they were already exploring other options to best serve clients.

First Republic: “We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients.”

Sources said that other banks were already approached by the FDIC to put in their bids should First Republic be seized by regulators. Other plans pitched by advisors of the bank were to pitch larger banks on a plan that would see the sale of bonds and other assets to raise equity.

Per the plan, bonds and other assets could be sold at an above-market rate. This sale would still result in a loss for the bank. However, it would protect it from a potentially worse situation.

It was said that long-term this solution would be cheaper compared to letting regulators seize the bank should it fail.

In mid-March, it was reported that First Republic Bank was said to have weighed options, including a sale. Around this time, the bank said that it had over $70 billion in unused liquidity for it to be able to fund operations.

Recently, it was reported that First Republic Bank shares dropped further as the US government said it wasn't willing to rescue it. During this time, the bank's shares dropped to $6.05, and as of press time, FRC shares sat at $3.71.

The decline happened despite 11 larger banks infusing $30 billion into First Republic Bank. Some of these banks include JPMorgan Chase & Co., Citigroup Inc., and Bank of America Corp.

See flow at unusualwhales.com/flow.

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