Shares of First Republic Bank have reached a new low as the bank attempts to secure a rescue deal.

On Wednesday, shares of First Republic Bank (NYSE: FRC) plummeted over 35%, with trading being paused multiple times due to volatility.

Reports of White House officials being unwilling to intervene in the rescue process of First Republic Bank have caused investors to dump shares, rekindling fears of a US banking crisis.

The bank’s shares plummeted by 36% in early US trading, after revealing that it had experienced withdrawals worth $100 billion, raising concerns about its financial health.

On Tuesday, the bank’s shares fell by 48%, following an announcement that it was considering selling between $50 billion to $100 billion worth of long-dated securities and mortgages to balance its books.

While the Financial Times had reported that First Republic was in talks with US authorities over emergency action, CNBC stated that officials were currently reluctant to intervene.

The situation has put pressure on the banking sector as a whole, with stocks in Europe falling, including the FTSE 100 down 0.62% and the CAC 40, DAX, and Euro Stoxx 50 all in the red on Wednesday. Clifford Bennett, the chief economist at ACY Securities, noted the risks posed by a possible banking crisis, tensions between China and the US, more sanctions against Russia and China, and the likelihood of global trade unravelling and higher inflation re-emerging.

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