© Reuters. FILE PHOTO: People are seen inside the First Republic Bank branch in Midtown Manhattan in New York City, New York, US, March 13, 2023. REUTERS/Mike Segar

(Reuters) -Wall Street CEOs and US officials discussing an intervention at First Republic Bank (NYSE:) are exploring the possibility of government backing to encourage a deal, Bloomberg News reported on Tuesday, citing people with knowledge of the situation.

Among options, the government could play a role in lifting assets out of First Republic that have eroded its balance sheet, according to the report.

Additional ideas have included offering liability protection, applying capital rules more flexibly or easing limits on ownership stakes, Bloomberg News reported.

First Republic, whose shares were down nearly 18% in aftermarket trading, declined to comment.

Read More about Business News