The biggest U.S. banks plan to inject as much as $30 billion into First Republic Bank in an effort to bolster the beleaguered lender as concern about the financial system spreads.
The biggest U.S. banks plan to inject as much as $30 billion into First Republic Bank in an effort to bolster the beleaguered San Francisco lender as concern about the financial system spreads, according to three bank executives with knowledge of the move.
JPMorgan Chase, Bank of America and Citigroup are each expected to inject $5 billion, with other institutions providing smaller amounts. The executives said various drafts of an announcement continued to circulate on Thursday but that the arrangements were nearly finalized. The other banks are Wells Fargo, Morgan Stanley, USBancorp, PNC Financial and Truist.
More than two-thirds of First Republic’s domestic deposits exceed the FDIC’s insurance limit of $250,000 per person, per bank. Investors’ uncertainty over the bank’s prospects prompted Fitch Ratings to downgrade its credit rating on Wednesday. The rescue package announced Sunday for Silicon Valley Bank and Signature Bank guaranteed all the lenders’ deposits, even for the uninsured. Separately, the Fed set up a facility to make cash loans available to all banks for up to a year in exchange for safe collateral, which would theoretically allow the lenders to handle deposit withdrawals of any amount.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
First Republic Bank bonds rally as big banks reportedly draw up rescue funding planAmerica's biggest banks are reportedly hashing out a potential plan to rescue First Republic Bank, according to the Wall Street Journal.
Lire la suite »
SVB, Signature Bank failure explained - USA TODAYHow worried should Americans be about recent bank collapses? usatodaymoney reporter Medora Lee puts things in perspective with 5 Things podcast host atltwil:
Lire la suite »
First Republic leads bank stocks' comeback after SVB-fueled selloffFirst Republic leads a comeback for bank stocks that cratered in the SVB-fueled selloff
Lire la suite »
First Republic Bank downgraded to ‘junk’ status by S&P Global Ratings in four-notch moveS&P Global Ratings downgraded its issuer credit rating on First Republic Bank by four notches to BB-plus from A-minus on Wednesday, placing it in speculative...
Lire la suite »
First Republic Bank cut to junk status by S&P on deposit outflow riskFirst Republic Bank was cut to junk by S&P Global Ratings amid concern that clients pull holdings, after U.S. regulators pledged support for the banking sector.
Lire la suite »
First Republic Bank stock tumbles on credit downgrade and deposit worriesFirst Republic Bank's credit rating was downgraded on Wednesday by both Fitch Ratings and S&P Global Ratings on concerns that depositors could pull their cash despite the federal intervention.
Lire la suite »