first Republic Bank will receive $30 billion from some of the top U.S. banks in a bid to stabilize the troubled firm, the banks confirmed in a March 16 joint statement.
Eleven of the largest U.S. financial institutions will provide an infusion to the bank following a volatile week that saw the lender’s shares plunge following the collapse of Silicon Valley Bank (SVB) last week, the institutions stated, confirming anonymously sourced reports that there were discussions to shore up First Republic.
“The actions of America’s largest banks reflect their confidence in the country’s banking system. Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most,” the banks said in the March 16 statement. “Smaller- and medium-sized banks support their local customers and businesses, create millions of jobs and help uplift communities. America’s larger banks stand united with all banks to support our economy and all of those around us.”
The banks that will provide deposits include Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY-Mellon, PNC Bank, State Street, Truist, and U.S. Bank. Those deposits will be uninsured, the statement said.
The U.S. Department of Treasury, Federal Deposit Insurance Corp., and the Federal Reserve also issued a statement confirming the move.
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