Several large U.S. banks have deposited $30B in First Republic Bank to provide liquidity and ease concerns that it would collapse like Silicon Valley Bank.
According
to sources, JPMorgan, Citigroup, Bank of America, and Wells Fargo were
in talks to deposit $5B each of their own funds into First Republic.
- 11 U.S. banks contributed to the $30B that was eventually deposited to First Republic.
- Other banks who contributed total include Morgan Stanley, Goldman Sachs, U.S. Bancorp, PNC Financial, and Truist Financial.
- Amid
panic over the collapse of SVB, big banks got an influx of billions of
dollars in deposits from midsize lenders, including First Republic.
- According
to sources, the $30B deposit could be structured so that the banks
would effectively be giving back some of the money they received from
First Republic depositors.
