(Reuters) – First Republic Bank’s shares fell more than 15% in premarket trading on Wednesday as the troubled lender’s plans to turn around its business were scrutinized by investors.
The company’s shares were last trading at $6.87, after losing nearly half of their value on Tuesday. The stock will hit a record low for the second straight day if current levels hold.
The bank is looking at several options, such as selling assets or the creation of a “bad bank”, a source familiar with the matter told Reuters on Tuesday.
However, analysts have highlighted several roadblocks which could complicate rescue efforts for the San Francisco-based lender as it looks to emerge out of the crisis sparked by an outflow of more than $100 billion in deposits in the first quarter.
At least three brokerages have cut their price targets on First Republic’s shares since it reported first-quarter earnings on Monday.
(Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta)
