First Republic Slumped 11% Despite Getting $30 Billion of Fresh Deposits in Bank Rescue
Tiger Newspress2023-03-17
First Republic slumped 11% despite getting $30 billion of fresh deposits in bank rescue.
The biggest US banks pledged $30 billion of fresh cash for First Republic Bank to stem the turmoil that has sent depositors fleeing from regional banks and shaken the country’s financial system.
JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. will contribute $5 billion of uninsured deposits each, while Goldman Sachs Group Inc. and Morgan Stanley will kick in $2.5 billion apiece, according to a statement Thursday. Other banks will deposit smaller amounts as part of a plan devised along with US regulators.
“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes,” the banks said in their statement. The consortium cited the outflows of uninsured deposits at a small number of banks following the collapse of Silicon Valley Bank and Signature Bank.
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