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April 25 (Reuters) – First Republic Bank (FRC.N) faces dwindling and tough options to turn around its business with the creation of a ‘bad bank’ or asset sales possibilities, a source familiar with the matter said, after the lender showed the extent of deposit flight during last month’s banking crisis.

The First Republic reported a more than $100 billion plunge in deposits in the quarter in the aftermath of the biggest turmoil to hit the banking sector since 2008. Shares on Tuesday slid to a record low, closing down nearly 50%.

“If someone were to acquire them … there’s going to be some big writedowns that would have to be taken against some of the assets given the rate cycle,” said Christopher Wolfe, head of North American banks at Fitch Ratings, referring to the bank’s mortgage loan book and securities portfolio.

“The options are very challenging and probably very costly, especially for shareholders,” Wolfe said. “Who’s going to bear the cost?”

A ripple effect was felt among other banks and the broader market. Regional bank PacWest Bancorp (PACW.O) fell 9%, Western Alliance Bancorporation (WAL.N) 6%, Zions Bancorp (ZION.O) 5% and brokerage Charles Schwab Corp (SCHW.N) was down 4%. Large banks were also hit with JPMorgan (JPM.N) down 2%.

The KBW Regional Banking Index (.KRX) dropped 4%, the broader S&P 500 bank index (.SPXBK) fell 2.6% and broader markets showed concern with US stocks lower and US Treasury yields falling.

The First Republic said on Monday it was “pursuing strategic options” to quickly strengthen the bank, without providing details.

The lender was studying all options, a person familiar with the matter said on Monday, speaking on condition of anonymity because the discussions were private.

The source said the bank wanted the US government to help by convening parties that could buoy San Francisco-based First Republic’s fortunes, including private equity firms and big lenders.

Options include an asset sale of up to $100 billion, a source familiar with the situation said on Tuesday. A second source familiar with the matter said that possible buyers were contacted by advisors for the First Republic with the idea of ​​receiving preferred equity in exchange for buying assets. Bloomberg News earlier reported the chance of asset sales and said buyers might receive incentives such as warrants or preferred equity.

David Chiaverini, analyst at brokerage firm Wedbush Securities said that if First Republic was willing to hand out preferred equity in exchange for selling loans above market value then “it will allow them in a way to sidestep from realizing the losses while at the same time helping to capitalize the bank.”

The bad bank possibility, earlier reported by CNBC, is a crisis-type method of isolating financial assets that have problems. Chiaverini said such a scenario would be a challenge as the bank’s loans and securities are

But succession is only one of many popular shows out now about people who make (or work for people who make) millions of dollars a year. HBO also has its sleeper hit Industry, which follows the rowdy young graduates working in the high-stakes environment of fictional London investment bank Pierpoint & Co. In the series, volatile star banker Eric Tao (played by Ken Leung) sometimes swaps out his suit for a bright purple Pierpoint sweatshirt at the office. The hoodie became such a fan favorite—apparently even the late designer and merch connoisseur Virgil Abloh coveted one—that HBO eventually put a version up for sale on its site, albeit with that pesky HBO show logo.

And then there’s Showtime’s long-running hit Billions, where some employees at the fictional hedge fund Ax Capital do, indeed, wear Ax Capital merch on a regular basis. “It’s almost a tribal thing,” the show’s costume designer Eric Daman told Vultures in 2019. “The Wall Street guys all wear these vests, and have such pride in being part of the firm that they’re with.” Sure enough, Showtime sells that vest, too.

Dollar Bill’s Ax Cap vest or Eric’s Pierpoint hoodie aside, the official prestige TV merch doesn’t feel especially authentic to the shows’ one-center universes. For example, the brand on both the succession and Billions fleece vests is Port Authority, a wholesale apparel retailer that also provides merchandise blanks for, among other institutions, the New York City Police Department. Not that it would necessarily be easy to make official merch with, say, Loro Piana, or even Patagonia, who put a kibosh on companies stitching logos onto its apparel a few years back, in an effort to distance itself from the legions of vest- clad tech and finance bros schlepping through Midtown. But in the spirit of making cheeky finances bro dudes, there’s gotta be another option somewhere for an upgraded dupe.