Otherwise, the financial institution became the third American bank to fail in less than a week.
The heads of the 11 largest banks in the US decided to allocate 30 billion dollars to ensure the deposits of First Republic Bank, which is on the verge of a crisis. CNBC reported this in connection with the statements of financial institutions.
Among those who backed the bank were Bank of America, Wells Fargo, Citigroup, JPMorgan Chase. For temporary help, they sent him five billion dollars each.
Goldman Sachs and Morgan Stanley contributed $2.5 billion, while Truist, PNC, US Bancorp, State Street and Bank of New York Mellon contributed $1 billion.
Deposits must remain at First Republic for at least 120 days.
“The show of support from a group of big banks is very welcome and demonstrates the stability of the US banking system,” the statement said.
The organizations also noted that support is needed because medium-sized and small banks are “critical to the healthy functioning of the US financial system.”
According to the US Federal Reserve for 2022, the First Republic will rank 14th in terms of aggregate US assets.
Over the past week, the bank’s shares have fallen by nearly 80%. Against the backdrop of the collapse of two American banks, Silicon Valley Bank and Signature Bank, customers began withdrawing funds from First Republic. The bank’s ratings were downgraded to speculative grade levels.
Recall that the financial crisis caused problems for Swiss bank Credit Suisse, forcing it to borrow up to $54 billion from the Swiss central bank to maintain liquidity.
Global financial stocks lost $465 billion due to SVB’s bankruptcy
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.