The Federal Deposit Insurance Corporation is preparing to place First Republic under receivership imminently, a person familiar with the matter said Friday, sending shares of the lender down more than 40% in extended trading.

Shares of the bank closed down 43% after CNBC reported earlier in the day the lender was likely headed for receivership under the FDIC, worsening a stock rout that has wiped out 75% of its value this week.

The banking regulator decided the troubled regional lender’s position has deteriorated and there is no more time to pursue a rescue through the private sector, the source told Reuters, requesting anonymity because the matter is confidential.

First Republic and FDIC representatives did not immediately respond to requests for comment.