- After the collapse of the Silicon Valley Bank, the First Republic Bank got into trouble.
- It is now supported by eleven other banks with 30 billion dollars.
The US regional bank First Republic has also gotten into trouble as a result of the turbulence in the financial sector. It is now receiving billions in support from the largest American financial institutions.
Eleven banks – including industry leaders JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley – are helping the institute with uninsured deposits totaling $30 billion, as they announced on Thursday.
Legend:
The billions in support are intended to provide the First Republic with liquidity.
Keystone/Justin Lane
The move is intended to provide First Republic with liquidity and underline confidence in the US financial system, according to a statement from the banks involved.
Coordinated relief effort
According to US media, the relief effort was coordinated by US regulators to calm the situation. “This sign of support from a group of large banks is very welcome and shows the resilience of the banking system,” the US Treasury Department said in a separate statement released jointly with the Federal Reserve.
Similar to the “Silicon Valley Bank”, customers had withdrawn money on a large scale. As a result, First Republic Bank’s share price fell.