First Republic secures $30B rescue deal from several banks

 

The Wall Street Journal reported that First Republic Bank secured a $30B rescue package from major U.S. banks to stop the spread of panic after recent bank failures.  First Republic Bank holds a significant commercial real estate portfolio.  JP Morgan, Citigroup, Bank of America, and Wells Fargo made a $5B uninsured deposit into First Republic Bank.  Morgan Stanley and Goldman Sachs contributed $2.5B each, and five other banks have decided to give $1B each.  A joint statement from the U.S. Treasury, FDIC, and the Office of the Comptroller of the Currency welcomed the deal and said it demonstrated the banking system's resilience.  Earlier last week, Bloomberg reported that First Republic Bank was exploring strategic options, including sale.