First Republic advisers have lined up potential purchasers of bank’s new stock – CNBC

According to CNBC, First Republic Bank (FRC.N) advisers have lined up possible buyers of additional stock if they can restore the bank’s balance sheet.

After hitting a record low the day before, the troubled lender’s shares fell more than 10% in premarket trade.

After deposit flight during last month’s banking crisis, First Republic’s choices to turn around its company via a “bad bank” or asset sales are limited, a source told Reuters.

Bad banks isolate troubled financial assets during crises.

After the worst banking crisis since 2008, First Republic reported a more than $100 billion drop in deposits in the first quarter.

The bank has struggled in recent weeks to reassure clients that their money are safe and investors that it has liquidity to survive the crisis.