Stock Exchange Workers (REUTERS/Brendan McDermid)

a consortium of 11 major banks The Americans announced on Thursday that they will deposit a total of 30,000 million dollars in Bank of the First Republic to support the struggling California lender.

This is a dramatic coordinated move by private lenders to strengthen the system after three medium-sized banks failed last week.

“This action by America’s largest banks reflects their confidence in the First Republic and in banks of all sizes,” the group said in a press release.

JP Morgan there Bank of Americathe two largest banks in the United States, will each deposit $5 billion in the First Republic, according to The New York Times (NOW).

The same amount would put Citigroup, according to The Wall Street Journal.

On the other hand, we expect that Goldman Sachs there Morgan Stanley will each contribute $2.5 billion if the deal goes through and a small group of regional banks could contribute $1 billion each as part of the total, detailed the NOW.

After this leak in the media, First Republic shares rose 5.31%, at 3:00 p.m. local time (19:00 GMT), a stark contrast to the nearly 30% plunge earlier this morning.

First Republic had the third highest rate of uninsured deposits among U.S. banks, behind Silicon Valley Bank (SVB) and Signature Bank, according to a note from Raymond James.

First Republic, which is based in San Francisco, was downgraded to the “junk” category (garbagein English) Wednesday by Fitch Ratings and S&P Global.

With this movement, First Republic is prevented from following the path of Silicon Valley Bank and Signature Bank, entities closed by the authorities on Friday and Sunday respectively, in a movement which triggered a wave of panic which then spread to Europe.

(With information from EFE and AFP)


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