The biggest banks in America took action on Thursday to support First Republic, allaying concerns that the local lender might be the next to crash following bank failures like Silicon Valley Bank.
Including Bank of America, Citigroup, and JPMorgan Chase in their group of 11 US private banks, it was revealed that First Republic would receive a $30 billion infusion.
After three midsized lenders failed in the last week, the lenders took this drastic action to support the system.
‘This action by America’s largest banks shows their trust in First Republic and in banks of all sizes,’ the group said in a statement.
“Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most,” the banks said.
Shares of First Republic reversed earlier losses to close 10 percent higher on Wall Street Thursday.
“This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system,” said leaders of the Treasury Department, US Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency in a joint statement.
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