WALL STREET RESCUE: A group of banks led by JPMorgan and Bank of America are set to pile $30 billion into First Republic Bank
- A group of 11 banks led by JPMorgan, Bank of America, Citigroup, and Wells Fargo are set to deposit $30 billion into embattled First Republic.
- Also providing support are Morgan Stanley, Goldman Sachs, BNY Mellon, PNC Bank, State Street, Truist, and US Bank.
A group of 11 banks led by JPMorgan, Bank of America, Citigroup, and Wells Fargo is set to deposit $30 billion into embattled First Republic Bank.
The four firms will contribute $5 billion apiece. Goldman Sachs and Morgan Stanley will put in $2.5 billion apiece, while BNY Mellon, PNC Bank, State Street, Truist, and US Bank will each chip in $1 billion, according to a press release from Thursday afternoon.
The move comes after fears of depositors pulling funds from the lender ignited a steep sell-off in the bank's stock following Silicon Valley Bank's implosion.
Shares of First Republic swung sharply higher in Thursday afternoon trade. The rally came after shares traded down more than 30% earlier in the day Thursday following a Bloomberg report late Wednesday that the company was considering strategic options to bolster liquidity, including a sale to bigger banks. The bank's credit had earlier been downgraded to junk by ratings agencies S&P and Fitch.
First Republic on Sunday said its liquidity position remained "very strong," and in a regulatory filing, said it had received $70 billion of liquidity from the Federal Reserve and JPMorgan Chase.
First Republic shares have plunged about 80% year to date. Fierce selling erupted last week as investors scoped out lenders with a hefty amount of deposits that would be uninsured by the FDIC. Silicon Valley Bank was seized after clients pulled funds after learning a jump in interest rates spurred billions in losses in SVB's bond holdings.
First Republic had 68% of its deposits unprotected by the FDIC's insurance limit of $250,000 per account, according to the bank's latest 10-K filing. Silicon Valley Bank had about 94% of its total domestic deposits uninsured, according to S&P Global Market Intelligence data.
- Electricity prices in Finland flipped negative — a huge oversupply of clean, hydroelectric power meant suppliers were almost giving it away
- Family stands to lose nearly $6,000 in airfare and hotel costs after they were bumped from an overbooked cruise ship
- Flyers are 'skiplagging' to try and save money on flight tickets. Airlines hate it.
- Global trends, macroeconomic data to drive equity markets this week: Analysts
- New Parliament building inauguration: 'Sarva-Dharma Prarthana' ceremony held
- List of Famous things to buy in Coorg
- List of Famous things to buy in Srinagar
- What you need to know when you exercise your stock option plan