Financial crisis, live: Credit Suisse rises on the stock exchange and recovers IBEX 35 | ECB last minute

American banks cooperate to save the First Republic Bank with 30 thousand million

A group of US financial institutions announced in a joint statement that they bailed out First Republic Bank on Thursday with $30 billion.

Bank of America, Citigroup, JPMorgan Chase and Wells Fargo Announced today that they will hold all of them An unsecured deposit of $5 billion For the First Republic Bank. Goldman Sachs and Morgan Stanley Each of them will make an unsecured deposit of value $2.5 billion And BNY Mellon, PNC Bank, State Street, Truist, and US Bank Each of them will make an unsecured deposit of value $1,000 million.” According to the document.

After this announcement, First Republic shares rose 15:42 local time, 19:42 GMT, in stark contrast to the nearly 30% drop earlier this morning.

The first republic had tthird highest rate of uninsured deposits among US banks, Behind Silicon Valley Bank (SVB) and Signature Bank, according to a note by Raymond James.

It was First Republic, based in San Francisco demoted to the category of “junk” (garbage, in English) Wed for both Fitch Ratings As for Standard & Poor’s Worldwide.

with this movement First Republic has been prevented from going the way of Silicon Valley Bank and Signature Bankentities closed by authorities on Friday and Sunday, respectively, in a move that unleashed a wave of panic that later spread to Europe, EFE reports.

Leave a Reply

Your email address will not be published. Required fields are marked *