South Asian Views On Global News - Update 24X7

Leading US banks rescue distressed lender


Visa-Home Ad

Eleven financial institutions agreed to inject $30 billion in First Republic Bank

A group of the largest US banks unveiled a $30 billion injection in troubled regional lender First Republic to inspire confidence in the country’s banking system amid a widening crisis triggered by the collapse of two other mid-size lenders. 


First Republic will receive uninsured deposits from the country’s eleven banking majors – Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist, and US Bank – according to a statement released by First Republic on Thursday evening. 

The deposits must stay at the bank for at least 120 days, according to a statement by First Republic. 

First Republic’s shares have pared some of their earlier losses. Earlier this week, the lender’s stock price plunged 61.8%, forcing a brief halt in trading due to volatility. The drop marked an extension of a 33% plunge recorded the previous week.

Read more

US banking crisis poses global threat, former Treasury official tells RT

Bank of America, Citigroup, JPMorgan Chase and Wells Fargo said they would each make a $5 billion uninsured deposit, while Goldman Sachs and Morgan Stanley are each depositing $2.5 billion, and BNY-Mellon, PNC Bank, State Street, Truist, and US Bank $1 billion each.

“Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most,” the banks said in a joint statement.

The US banking sector has been hit by a major crisis following the collapse of Silicon Valley Bank last week after depositors rushed to withdraw their money amid worries over the bank’s financial health.

Silicon Valley Bank, a major player serving the tech and startup sectors, was shut down by regulators shortly after California-based, crypto-focused Silvergate liquidated its bank earlier last week. New York-based Signature Bank was also shut down by regulators last weekend due to liquidity concerns.

For more stories on economy & finance visit RT’s business section

Troubled First Republic Bank will receive a $30 billion injection in the form of unsecured deposits from a group of US banking majors Read Full Article at RT.com 

Replica of Print on your device!

CLICK & Send us 'hi' for Free Subscription

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

gtag('set', {'user_id': 'USER_ID'}); // Set the user ID using signed-in user_id.