Crack First Republic Bank, the largest American banks deposit 30 billion to save the credit institution
Eleven US banks have agreed to contribute a total of $30 billion in deposits to the bailout First Republic Bank. “This action by America’s largest banks reflects their confidence in the First Republic and banks of all sizes and demonstrates their overall commitment to helping banks serve their customers and their communities,” a joint statement read. signed by Treasury Department, Federal Reserve, Federal Deposit Insurance Corporation e Office of the Comptroller of the Currency.
In particular, Bank of America, Citigroup, JPMorgan Chase e Wells Fargo, the country’s four largest banks by assets, are each expected to contribute $5 billion. Investment banks Goldman Sachs e Morgan Stanley they will put $2.5 billion each. Bny Mellon, Pnc Bank, State Street, Truist e Us Bank they will intervene with 1 billion dollars. Founded in 1985, First Republic is the 14th largest US bank by assets, with $212 billion at the end of 2022.
Headquartered in San Francisco, the institute also has a presence on the East Coast, as well as western states such as Washington and Wyoming. The bank is known for private banking and wealth management. Due to its clientele, it has a large percentage of uninsured deposits which brought it under scrutiny after the bankruptcies of Svb, Signature e Silvergate.
Wall Street closes higher, DJ +1.17% Nasdaq +2.48%
First Republic Bank shares closed up 9.98%. The rebound succeeds on Wall Street, reassured by the intervention of the authorities on Svb e Signature Bank and from the bailout plan put in place for First Republic Bank. Notably, the Dow Jones gained 1.17% to 32,247 points, the S&P 500 1.75% to 3,960 and the Nasdaq 2.48% to 11,717.
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