Large US Banks Planning Rescue Efforts for First Republic – Report
Large financial institutions – as a group – are planning to deposit approximately $30 billion of their own money with First Republic, according to CNBC, citing sources, in hopes of restoring confidence in the banking system.
The funding is not considered an acquisition and the amount has not been finalized yet.
JPMorgan Chase, Citigroup, Bank of America and Wells Fargo are among the banks in talks over the deposit in First Republic. Morgan Stanley, Goldman Sachs, US Bancorp, PNC Financial Services, M&T Bank, Truist and Capital One are also reportedly involved in the discussions, according to the Wall Street Journal.
First Republic’s shares fell 22% on Thursday morning but bounced back after the news of a possible deal broke. They are down close to 70% over the last five trading days and the bank’s market cap has fallen from $21 billion on March 8, when the Silicon Valley Bank crisis began, to less than $5 billion.