First Republic Financial institution’s inventory closed down 50 p.c Tuesday, a day after a troubling earnings report and a convention name with analysts wherein the corporate’s executives refused questions. The velocity of the decline set off a sequence of volatility-induced buying and selling halts by the New York Inventory Change.

On Monday, after the shut of normal inventory buying and selling, First Republic launched outcomes that confirmed simply how perilous the financial institution’s future had change into since mid-March following the failure of Silicon Valley Financial institution and Signature Financial institution. First Republic stated its purchasers pulled $102 billion in deposits within the first quarter — effectively over half the $176 billion it held on the finish of final 12 months.

The financial institution acquired a short lived $30 billion lifeline final month from the nation’s greatest banks to assist shore up its enterprise. These banks, nevertheless, can withdraw their deposits as quickly as July. Within the first quarter, First Republic additionally borrowed $92 billion, largely from the Federal Reserve and government-backed lending teams, primarily changing its deposits with loans.

First Republic is taken into account probably the most susceptible regional financial institution after the banking disaster in March. What occurs to it may additionally have an effect on traders’ confidence in different regional banks and the monetary system extra broadly.

The financial institution’s executives did little to ascertain confidence throughout its convention name, providing simply 12 minutes of ready remarks. The financial institution additionally stated on Monday that it could reduce as a lot as 1 / 4 of its work drive, and slash government compensation by an unspecified sum.

“This can be a belief challenge, as it’s for any financial institution, and when belief is misplaced, cash will flee,” Aswath Damodaran, a finance professor at New York College, wrote in an e-mail.

An analyst at Wolfe Analysis, Invoice Carcache, laid out what he known as “the lengthy checklist of questions we weren’t allowed to ask” in a analysis notice on Tuesday. Amongst them: How can the financial institution survive with out elevating new cash, and the way can it proceed to offer attentive customer support — a staple of its repute amongst rich purchasers — whereas reducing the very employees who present it?

The financial institution’s choices to avoid wasting itself absent a authorities seizure or intervention are restricted and difficult. No purchaser has emerged for the financial institution in its entirety. Any financial institution or investor group fascinated by taking up the financial institution must tackle First Republic’s mortgage portfolio, which may saddle the client with billions of {dollars} in losses based mostly on the latest rate of interest strikes. The financial institution can be troublesome to unload in items as a result of its prospects use many various providers like checking accounts, mortgages and wealth administration.

There are not any simple options for First Republic’s state of affairs, stated Kathryn Decide, a monetary regulation knowledgeable at Columbia Regulation Faculty. “If there have been engaging choices, they might have pursued them already,” Ms. Decide defined.

The Fed can not tackle a few of a financial institution’s monetary danger to ease a takeover in the way in which it did in 2008, as a result of reforms after the monetary disaster modified its powers. And whereas the Federal Deposit Insurance coverage Company would possibly be capable to assist in a roundabout way, that may most certainly contain failing the financial institution and invoking a “systemic danger exception,” which might require sign-off by officers throughout a number of companies, Ms. Decide stated.

But if the financial institution does fail, the federal government must determine whether or not to guard its uninsured depositors, which may be a troublesome name, she stated.

“There’s actually no simple reply,” Ms. Decide stated.

Representatives for the Fed and the F.D.I.C. declined to remark.

Shares of different banks additionally fell on Tuesday, although not almost as a lot as First Republic. The KBW Financial institution Index, a proxy for the business, closed down about 3.5 p.c.

Individually, the Fed stated on Tuesday that its evaluation of the supervision and regulation of Silicon Valley Financial institution will likely be launched at 11 a.m. on Friday.

Rob Copeland contributed reporting.