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 11.42%.at 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.
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