Federal Agencies: First Republic Bank Rescued with $30 Billion Deposited from 11 Banks

16 Mar 2023

First Republic Bank was rescued with $30 billion worth of deposits from 11 banks after it faced a falling stock price and fleeing depositors, the Treasury, Federal Reserve, Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency said in a joint statement Thursday.

The $30 billion deposit is far more than previous negotiations indicated. According to the Wall Street Journal, “JPMorgan, Citigroup, Bank of America, and Wells Fargo were in earlier talks to deposit $5 billion of their own money each into the lender.” But the final rescue package included 11 banks and $30 billion in capital to prevent the bank from collapsing.

The banks that have come to the rescue are Bank of America, Wells Fargo, Citigroup, and JPMorgan Chase, which will contribute about $5 billion apiece. Goldman Sachs and Morgan Stanley will deposit about $2.5 billion, according to the banks’ press release. Truist, PNC, U.S. Bancorp, State Street, and Bank of New York Mellon will deposit about $1 billion each. The massive deposits are obligated to remain in First Republic for at least 120 days, according to CNBC.

https://www.breitbart.com/economy/2023/03/16/federal-agencies-first-republic-bank-rescued-with-30-billion-deposited-from-11-banks/