First Republic Bank shares plummet on government intervention fears.

Shares of First Republic Bank dropped by nearly 50% on Friday amid reports that the US government may step in to help the troubled bank. Concerns over deposit flight have been mounting since the bank reported a significant contraction in its deposit base in its first-quarter earnings report. While the government ensured the deposits of Silicon Valley Bank customers during its collapse, it is unclear if First Republic customers will receive similar protections. The possibility of government intervention and murky protections for account balances over $250,000 may lead to further deposit flight, worsening the bank's situation.