First Republic Bank gets US$30 billion in deposits from big banks in rescue effort
- JPMorgan Chase, Bank of America, Citigroup and Wells Fargo will contribute US$5 billion each; Goldman Sachs and Morgan Stanley will kick in US$2.5 billion apiece
- First Republic’s shares have plummeted in the aftermath of regulators’ seizure of fellow regional lenders Silicon Valley Bank and Signature Bank
The US’s biggest banks agreed to deposit US$30 billion with First Republic Bank in an effort to stem the turmoil that has sent depositors fleeing from regional banks and shaken the country’s financial system.
JPMorgan Chase, Bank of America, Citigroup and Wells Fargo will contribute US$5 billion of deposits each, while Goldman Sachs and Morgan Stanley will kick in US$2.5 billion apiece, according to a statement Thursday.
PNC Financial Services, Bank of New York Mellon, Truist Financial, US Bancorp and State Street will each contribute US$1 billion.
“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes,” according to a statement.
02:30
Silicon Valley Bank collapse stuns tech firms around the world, global operations dismantled
Shares of First Republic swung wildly on Thursday, plunging as much as 36 per cent early in the day, then surging as much as 28 per cent by midday after details of the emerging plan were first reported.