The largest banks in the US, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, have agreed to deposit $30 billion with First Republic Bank to stabilize the banks financial worries amid the ongoing banking crisis. Goldman Sachs and Morgan Stanley will also contribute to the effort, providing $2.5 billion each. Other financial institutions, including PNC Financial Services Group, Bank of New York Mellon, US Bancorp, and State Street, will each deposit $1 billion. This move aims to install confidence back and help prevent depositors from leaving regional banks, which have struggled in recent weeks. In a statement from the bank they said the following :-
“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes,”
Huge Swings in the share price on Thursday were reflected in the market sinking 36% in the morning, then surging 28% after the plan was announced by the bank. First Republic bank has been trying to distance itself from Silicon Valley bank collapse (SVB) having most of there operations in private wealth management franchise with some $US271 billion in assets. This story is ongoing