Wall Street giants move to rescue First Republic Bank
America’s largest banks moved Thursday to shore up First Republic, easing fears that the regional lender could be the next domino to fall after collapses including Silicon Valley Bank.
A consortium of 11 US private banks, including Bank of America, Citigroup and JPMorgan Chase, announced they would deposit $30 billion into First Republic.
The move marks a dramatic initiative by the lenders to bolster the system following failures of three midsized lenders in the last week.
“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes,” the group said in a joint statement.
“Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most,” the banks said.
Shares of First Republic reversed earlier losses to close 10 percent higher on Wall Street Thursday.
“This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system,” said leaders of the Treasury Department, US Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency in a joint statement.
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