RT.com
17 Mar 2023, 18:50 GMT+10
Eleven financial institutions agreed to inject $30 billion in First Republic Bank
A group of the largest US banks unveiled a $30 billion injection in troubled regional lender First Republic to inspire confidence in the country's banking system amid a widening crisis triggered by the collapse of two other mid-size lenders.
First Republic will receive uninsured deposits from the country's eleven banking majors - Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist, and US Bank - according to a statement released by First Republic on Thursday evening.
The deposits must stay at the bank for at least 120 days, according to a statement by First Republic.
First Republic's shares have pared some of their earlier losses. Earlier this week, the lender's stock price plunged 61.8%, forcing a brief halt in trading due to volatility. The drop marked an extension of a 33% plunge recorded the previous week.
Bank of America, Citigroup, JPMorgan Chase and Wells Fargo said they would each make a $5 billion uninsured deposit, while Goldman Sachs and Morgan Stanley are each depositing $2.5 billion, and BNY-Mellon, PNC Bank, State Street, Truist, and US Bank $1 billion each.
"Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most," the banks said in a joint statement.
The US banking sector has been hit by a major crisis following the collapse of Silicon Valley Bank last week after depositors rushed to withdraw their money amid worries over the bank's financial health.
Silicon Valley Bank, a major player serving the tech and startup sectors, was shut down by regulators shortly after California-based, crypto-focused Silvergate liquidated its bank earlier last week. New York-based Signature Bank was also shut down by regulators last weekend due to liquidity concerns.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Broadcast Communications news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Broadcast Communications.
More InformationSEATTLE, Washington: U.S. coffee company Starbucks has said it is not planning to sell all of its business in China, even though a...
NEW YORK, New York - U.S. stocks surged on Thursday, with Wall Street's major indexes climbing nearly 1 percent as investor optimism...
NEW YORK, U.S.: Two giants of the early internet job search era—CareerBuilder and Monster—have formally filed for bankruptcy protection,...
LONDON, U.K.: Amazon has once again been rated the worst major UK grocery retailer by its suppliers when it comes to following fair...
LONDON/NEW YORK/CHICAGO: In suburban Chicago, just 15 minutes from O'Hare International Airport, a small customs brokerage quietly...
NEW YORK, New York, - U.S. stocks were split, but little moved Wednesday after a positive start to the week heralded by a two-day rally....
SHARJAH, 7th May, 2025 (WAM) -- The Sharjah Broadcasting Authority (SBA) recently took part in the 76th World News Media Congress,...
New Delhi [India], June 25 (ANI): As the country marked the 50th anniversary of the Emergency imposed by then Prime Minister Indira...
Noida (Uttar Pradesh) [India], June 25 (ANI): Senior journalist Rajat Sharma, who was jailed for 10 months during the Emergency, recalled...
(250625) -- TUNIS, June 25, 2025 (Xinhua) -- Abdelrahim Suleiman, director general of the Arab State Broadcasting Union (ASBU), speaks...
New Delhi [India], June 25 (ANI): Marking 'Samvidhan Hatya Diwas', observed on the 50th anniversary of the Emergency imposed in 1975,...
South Dinajpur (West Bengal) [India], June 25 (ANI): Marking the 50th anniversary of the imposition of Emergency in India, Union Minister...