CNBC's David Faber notes that the government is reluctant to get involved in a private-sector led rescue of First Republic Bank.
"As we head into the weekend... the government's lack of wanting to be involved in a market solution, leads you to another solution," Faber said. He hinted that the FDIC could take over the bank as soon as this weekend.
"The window is closing fast" he said a source involved told him.
The company also had a statement saying "we are engaged in discussions" on a solution.
Shares are up 4% premarket so hope springs eternal. Yesterday's price action proved that the market has realized that FRC is idiosyncratic and not systemic but a resolution on the weekend would still be the best thing for the broader market.
