First Republic bank, which is experiencing a crisis of confidence from investors and depositors, is set to receive deposits worth $30B from 11 big banks.
First Republic's woes have been due to the contagion from the fallout of Silicon Valley Bank and Signature Bank.
- 68% of total deposits in First Republic are uninsured, per S&P Global.
- There
were growing concerns that because of its similarity to SVB, depositors
would make large withdrawals and move their money elsewhere.
- First Bank's problems were further compounded when Fitch and S&P Global downgraded its credit ratings on Wednesday.
- As a result, other banks intervened to guarantee that customers' withdrawal requests would be fulfilled.
- JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are set to deposit $5B each, while Goldman Sachs and Morgan Stanley promised $2.5B each.
- Other banks, BNY Mellon, PNC Bank, State Street, Truist, and US Bank, are set to contribute $1B each into First Republic.
