First Republic most likely headed for FDIC receivership, sources say; shares drop 50%

Shares of First Republic dropped sharply on Friday as hopes dimmed for a rescue deal that could keep the bank afloat.

Sources told CNBC’s David Faber that the most likely outcome for the troubled bank is for the Federal Deposit Insurance Corporation to take it into receivership. The stock slid 50% and was halted for volatility multiple times.

The stock has fallen more than 90% this year as investors have lost confidence in the bank after two regional lenders failed in March.