Investing.com -- Shares in First Republic Bank (NYSE:FRC) rose in premarket U.S. trading on Thursday, as investors attempt to gauge if the embattled midsized lender can secure a deal to shore up its finances.
San Francisco-based First Republic's stock slid by just under 30% in the previous session. The move extended a series of declines that began earlier this week when the bank revealed $100 billion in customer withdrawals last month.
However, First Republic's advisors are trying to persuade larger U.S. banks to snap up bonds from First Republic at above-market prices, according to a CNBC report. The losses on the purchases, the report said, would be lower than the fees from the Federal Deposit Insurance Corp. that these banks would have to pay if First Republic collapses.
A group of 11 of the biggest U.S. banks previously injected $30 billion in deposits into First Republic in March. The move came after the implosion of Silicon Valley Bank sparked a crisis in the financial services sector that brought the regional lender to the brink of failure.
First Republic shares are now down by more than 96% over the past one-year period.