11 banks pour $30 billion to save First Republic Bank
Support by group of large banks demonstrates resilience of banking system, US agencies say
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Eleven banks poured $30 billion in deposits to save First Republic Bank, according to a joint statement by US agencies on Thursday.
"11 banks announced $30 billion in deposits into First Republic Bank," Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, Federal Deposit Insurance Corporation Chairman Martin Gruenberg, and Acting Comptroller of the Currency Michael Hsu said in the statement.
"This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system," they added.
Bank of America, Citigroup, JPMorgan Chase and Wells Fargo announced in a separate statement Thursday they are each making a $5 billion uninsured deposit into First Republic Bank.
While Goldman Sachs and Morgan Stanley are each making an uninsured deposit of $2.5 billion, BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank are each making an uninsured deposit of $1 billion, according to the statement.
"The banking system has strong credit, plenty of liquidity, strong capital and strong profitability. Recent events did nothing to change this ... The actions of America’s largest banks reflect their confidence in the country’s banking system. Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most," it added.
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