First Republic Plunges on Expectation of Seizure by FDIC

First Republic Bank shares fell as much as 54% in extended New York trading on speculation that it would be seized by regulators, as regional US lenders are pressured by deposit drains and weakening investments.

Regulators were poised to place the San Francisco-based lender into receivership, Reuters reported late Friday, citing a person it didn’t identify. The move was imminent after the Federal Deposit Insurance Corp. and other regulators were unable to engineer a rescue, Reuters said.