USA: Funding for First Republic Bank

First Republic, a troubled American bank, secured $30 billion (about 28 billion francs) in financing from eleven major banks. “This action by America’s largest banks reflects their confidence in First Republic and banks of all sizes,” financial firms including Bank of America, Citigroup and JPMorgan Chase said Thursday. It also shows a collaborative approach Confidence of big banks “Banking System of the Country”.

“Regional, mid-sized and small banks are central to the health and functioning of our financial system,” the banks added in a joint press release. Big banks are now using their “financial strength and liquidity” where it is needed most urgently.

in grief

Citigroup, Bank of America, JPMorgan Chase and Wells Fargo all have $5 billion in uninsured deposits each at First Republic Bank. Goldman Sachs and Morgan Stanley contributed $2.5 billion each. BNY Mellon, PNC Bank, State Street, Truist and US Bank are each providing $1 billion.

San Francisco-based regional bank First Republic After the crash Silicon Valley Bank (SVB) is in trouble. The bank’s shares have lost a lot of value since the middle of last week. The bank’s stock rose on Thursday.

“Our banking system is solid”

Bankruptcy of SVB – America’s biggest bank failure Since the 2008 financial crisis – it has caused significant turbulence in the US and internationally and caused difficulties for many banks. The California-based bank, which operates primarily in the technology sector, collapsed last week after withdrawing large amounts of customer deposits.

As a result, New York-based Signature Bank also had to close. The US government intervened aggressively and guaranteed all customer deposits in both banks.

Treasury Secretary Janet Yellen tried to reassure the public again on Thursday. “Our banking system is sound, and Americans can be confident that their deposits will be there when they need them,” Yellen said in a hearing before the US Senate Treasury Committee. The US government has “taken decisive and strong steps to ensure and strengthen public confidence in our banking system”.

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