US officials are leading urgent rescue discussions for First Republic.

According to three sources familiar with the situation, US officials are organising urgent talks to save First Republic Bank (FRC.N), since private-sector efforts spearheaded by the bank's advisers have yet to yield a result.

It is unclear whether the United States government is exploring a private-sector bailout of First Republic. According to one of the insiders

The government's involvement has emboldened First Republic officials as they hurry to put together a deal that will prevent a takeover by US regulators.

In March, First Republic became the epicentre of the U.S. regional banking crisis when the wealthy clientele it courted to fuel its rapid development began withdrawing deposits, leaving the bank reeling.

According to two sources involved with the conversations, the transaction structure that has the best chance of saving First Republic is a special purpose entity that would carve out some of the lender's assets for other banks to buy.

Wall Street banks have been attempting to find a solution for First Republic since March 16, when 11 of the country's largest lenders placed $30 billion at the bank to halt a regional banking crisis that resulted in the failures of Silicon Valley Bank and Signature Bank.

First Republic shares were trading down 30% to $4.31 on Friday. First Republic shares have lost 95% of their value since the regional banking crisis started on March 8.