First Republic Bank to receive $30B rescue from 11 US large banks
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E-mail Xinhua, March 17, 2023
This photo taken on March 13, 2023 shows the exterior view of a First Republic Bank branch in Millbrae, California, the United States. [Photo/Xinhua]
As the share price of San Francisco-based First Republic Bank fell and its credit was downgraded, 11 U.S. large banks said on Thursday they would make uninsured deposits worth 30 billion U.S. dollars into First Republic Bank to shore it up.
The deposits came from Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank.
"This action by America's largest banks reflects their confidence in First Republic and in banks of all sizes, and it demonstrates their overall commitment to helping banks serve their customers and communities," said a statement from the group of banks.
The actions of the banks reflect their confidence in the country's banking system, the statement said.
"Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most," the statement said.
The announcement came in the wake of the collapse of Silicon Valley Bank and concerns that the trouble for the banking industry could spread.
The U.S. Treasury Department said in a statement on Thursday that the show of support by a group of large banks "is most welcome, and demonstrates the resilience of the banking system."
A representative for First Republic Bank declined to comment on its financial health or the downgrading of its credit, as well as concerns it could see more customers pull their deposits, according to a report by The San Francisco Chronicle.
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