:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/HLNBHEDTW6ULPRJJOT2NI75II4.jpg "Sources: Banks prepare rescue plan for First Republic Bank 1")
NEW YORK (AP) — Several U.S. banks are planning a bailout of at least $20 billion for First Republic Bank, sources told The Associated Press on Thursday.
The move comes as the San Francisco-based First Republic has suffered an investment loss and fears are growing that the midsize bank could be next to collapse after Silicon Valley Bank and Signature Bank.
Sources familiar with the matter said JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs are among the group of banks putting together the package. It will likely be $20 billion in deposits and capital for the First Republic, but could reach $30 billion.
The sources spoke on condition of anonymity because they were just preparing the case.
A spokesman for the First Republic declined to comment.
First Republic shares faltered as customers began to withdraw their deposits. But they rose more than 3% as news of the bailout surfaced.
A week ago, Silicon Valley Bank collapsed, the second-largest bank failure in history after Washington Mutual in 2008.
The closing of Silicon Valley Bank on Friday and that of Signature Bank in New York two days later brought back unpleasant memories of the financial crisis that plunged the United States into the Great Recession of 2007-2009.