Reports suggest that the US Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic Bank under receivership, meaning that the San Francisco based Bank is facing collapse.
Its shares crashed 43 per cent on Friday.
With over $US200 billion USD worth of assets and 7,000 employees, the bank was thought to be too big to fail. It may well be the third bank collapse in the US of 2023.
Some say this is a sign that credit markets are showing signs of seizing as a result of the interest rate tightening cycle we have seen from the Federal Reserve.