U.S. big banks are discussing ways they can support embattled First Republic Bank. JPMorgan Chase CEO Jamie Dimon is leading the talks.
Options being discussed include the large banks making a capital investment into First Republic. First Republic shares fell 47% on Monday, trading as low as $11.52.
- First Republic Bank consumers have withdrawn more than $70B from the bank since the collapse of Silicon Valley Bank on March 10.
- Last week 11 banks, including JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, and Morgan Stanley, agreed to deposit a combined $30B into First Republic.
- The large banks received billions of dollars in deposits from midsize banks, including First Republic, in the week following SVB’s sudden collapse.
- According to sources, JPMorgan is advising First Republic on strategic alternatives, including a capital raise or a possible sale.
- First Republic shares are down more than 90% since the beginning of March.
- On Sunday, credit rating company S&P Global Ratings cut First Republic’s crediting rating from BB+ to B+.
- The bank’s rating remains on CreditWatch Negative.
