RT.com
17 Mar 2023, 23:20 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 Perth Herald 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 Perth Herald.
More InformationWASHINGTON D.C.: The US Federal Reserve Bank has announced that cash-strapped banks throughout the US borrowed some $300 billion during ...
BEIJING, China: Following the inability of China Huarong Asset Management Co Ltd to release financial reporting obligations in 2020, China ...
HANOI, Vietnam: SpaceX, Netflix and Boeing will join what is described as the "biggest-ever" U.S. business mission to meet in ...
TAIPEI, Taiwan: Reuters reported that after winning an order to manufacture wireless AirPods earphones for Apple for the first time, ...
TAIPEI, Taiwan: The founder of chip manufacturer TSMC, Morris Chang, said that he supports the efforts of the US to ...
MOSCOW, Russia: State run news agency TASS has reported that Russia's Industry and Trade Minister Denis Manturov said that Japanese ...
BLUE MOUNTAINS, Sydney, NSW, Australia - A search in the Blue Mountains for a man that was launched on Sunday ...
WASHINGTON D.C.: White House national security adviser Jake Sullivan has said that Australia will purchase three Virginia class nuclear-powered submarines, ...
Mumbai (Maharashtra) [India], March 21 (ANI): In a major crackdown against the drugs racket, the Anti Narcotics Cell (ANC) of ...
Vaping regularly makes headlines, with some campaigning to make e-cigarettes more available to help smokers quit, while others are keen ...
Visakhapatnam (Andhra Pradesh) [India], March 20 (ANI): Indian skipper Rohit Sharma said that the team management will continue to back ...
New Delhi [India], March 20 (ANI): In a meeting with the US Charge d'Affaires in New Delhi on Monday, India ...