Breaking: US FDIC prepares to take over First Republic Bank

First Republic Bank is set to be placed under receivership imminently by the Federal Deposit Insurance Corporation (FDIC). According to a report by Reuters, the information comes from an individual familiar with the takeover.

The FDIC is of the opinion that the First Republic Bank's lender's position has deteriorated and that there is no more time for the bank to pursue a rescue through the channels of the private sector. 

The report comes after the bank's stock FRC continued to crash throughout this week, noting a near 71% fall since April 25. Consequently, the downfall that began on March 7 has diminished FRC's value by more than 97.5% from $121 to $3.51 at the time of writing. 

The bank on April 29 continued noting a freefall, and its trading had to be halted after FRC crashed by over 43% before the stock market closed. The announcement of FDIC placing First Republic Bank under imminent receivership came less than four days after the initial reports of a potential takeover came to light.

Read more: Bitcoin price climbs back above $28,000 as First Republic Bank crashes by 50%

Bitcoin price notes no change

Bitcoin price at the time of writing could be seen trading at $29,366 after recovering by more than 8% this week from the lows of $27,250. Additionally, the cryptocurrency also reclaimed its status as a “safe haven” in Q1 this year, after the biggest cryptocurrency in the world rallied by more than 50% despite the banking crisis in the United States.

BTC/USD 1-day chart

When Silvergate Bank, Silicon Valley Bank and Signature failed, it also impacted the stock markets, but Bitcoin price continued rising. Consequently, BTC also regained its status of being an “inflation hedge” asset after decoupling from the stock market earlier this year.