First Republic Bank

Bank of America, Goldman Sachs, JP Morgan agree to prop up troubled bank after its shares tumbled amid wider turmoil.

The unprecedented rescue plan will see most of the US’s largest banks making uninsured deposits into First Republic. Goldman Sachs and Morgan Stanley are each making deposits of $2.5bn, and BNY Mellon, PNC Bank, State Street, Truist and US Bank are each making a deposit of $1bn, for a total deposit from the eleven banks of $30bn. [The long-troubled bank’s](https://www.theguardian.com/news/2022/feb/20/credit-suisse-secrets-leak-unmasks-criminals-fraudsters-corrupt-politicians) share price had collapsed after its largest shareholder, Saudi National Bank, said it was unable to provide more financing to Credit Suisse. First Republic’s percentage of uninsured deposits was far lower – at 68% according to S&P Global - but was high enough to worry investors and depositors with more than $250,000 in accounts at the bank. “The actions of America’s largest banks reflect their confidence in the country’s banking system. Shares in First Republic – a San Francisco-based bank that largely caters to wealthier clients including Facebook co-founder Mark Zuckerberg – had fallen about 70% since the news of SVB’s collapse.

A deal to deposit $30 billion into First Republic Bank announced on Thursday was put together by top power brokers from the U.S. Treasury, Federal Reserve ...

[(GS.N)](https://www.reuters.com/companies/GS.N), Morgan Stanley [(MS.N)](https://www.reuters.com/companies/MS.N) also agreed to pump in $2.5 billion each into First Republic. Bancorp [(USB.N)](https://www.reuters.com/companies/USB.N) channeled $1 billion of deposits into the San Francisco-based lender. The rescue plan was a "sly vote of confidence in the contributing banks" from regulators, said Chris Kotowski, an analyst at Oppenheimer Research. First Republic's shares closed 10% higher at $34.27 on Thursday, ending a volatile day which saw its trading halted 17 times. The company also suspended its dividend, it said in a Sullivan & Cromwell did not immediately respond to a request for comment. Other lenders including BNY Mellon [(BK.N)](https://www.reuters.com/companies/BK.N), PNC Financial Services Group [(PNC.N)](https://www.reuters.com/companies/PNC.N), State Street Corp [(STT.N)](https://www.reuters.com/companies/STT.N), Truist Financial Corp [(TFC.N)](https://www.reuters.com/companies/TFC.N) and U.S. banking sector, hit by the collapse of SVB Financial Treasury, Federal Reserve and banks including JPMorgan Chase & Co after a steep decline in First Republic's shares, according to sources. [(BAC.N)](https://www.reuters.com/companies/BAC.N) Citigroup and Wells Fargo & Co [(WFC.N)](https://www.reuters.com/companies/WFC.N) make uninsured deposits of $5 billion each into the bank. [(SIVB.O)](https://www.reuters.com/companies/SIVB.O) on Friday and the shutdown of Signature Bank [(SBNY.O)](https://www.reuters.com/companies/SBNY.O) on Sunday, the second and third largest bank failures in U.S. [(JPM.N)](https://www.reuters.com/companies/JPM.N) CEO Jamie Dimon earlier this week, two sources familiar with the situation said.

The latest twist in the US regional banks saga came on the heels of a 50 basis point rate hike by the European Central Bank, which earlier in the day had ...

The Dow Jones Industrial Average rose 371.98 points, or 1.17 per cent, to 32,246.55, the S&P 500 gained 68.35 points, or 1.76 per cent, to 3,960.28 and the Nasdaq Composite added 283.23 points, or 2.48 per cent, to 11,717.28. Facebook parent Meta Platforms and Snapchat operator Snap Inc climbed 3.63 per cent and 7.25 per cent, after the US administration threatened to impose a ban on rival TikTok. US-listed shares of Credit Suisse advanced after the bank secured a credit line of up to $US54 billion ($A81 billion) from the Swiss National Bank to shore up liquidity and investor confidence. The positive sentiment spread to other regional lenders, with Alliance Bancorp and PacWest Bancorp advancing 14.09 per cent and 0.7 per cent, respectively, following a negative start. Shares of JP Morgan and Morgan Stanley were up 1.94 per cent and 1.89 per cent respectively, while the lifeline buoyed First Republic Bank, which gained 9.98 per cent. The latest twist in the US regional banks saga came on the heels of a 50 basis point rate hike by the European Central Bank, which earlier in the day had dampened investor sentiment already hurt by fears of a banking crisis.

A US bank that was teetering on the brink of collapse has been shored up after some of its rivals made deposits worth billions of dollars.

Banks like Credit Suisse were forced to sell bonds at a loss. Stocks in the Swiss bank fell to 1.68 Swiss francs ($A2.71) – the lowest price in its history. A US bank that was teetering on the brink of collapse has been shored up after some of its rivals made deposits worth billions of dollars. It comes at the same time that a European investment bank, Credit Suisse, was also feared to be on the brink of disaster. Some of the biggest banks in the US are determined to keep the regional bank alive, reportedly depositing $US30 billion ($A45 billion) into First Republic Bank to help its liquidity crunch. Meanwhile, it continued to be a bloodbath for banks on the stock market late into the week.

Just one First Republic executive bought the company's stock this year, while insiders such as its CEO and executive chairman sold shares in the two months ...

[crater](https://www.forbes.com/sites/dereksaul/2023/03/16/first-republic-stock-crashes-but-bounces-back-as-big-banks-reportedly-closing-in-on-30-billion-rescue-plan/?sh=3af733fd7d56) as much as 36% in Thursday trading before reports about big banks’ plan to deposit tens of billions of dollars into First Republic and a subsequent announcement of $30 billion in fresh uninsured deposits spurred a dramatic turnaround for a 10% gain on the day for the sputtering stock. [First Republic Stock Crashes But Bounces Back As Big Banks Reportedly Closing In On $30 Billion Rescue Plan](https://www.forbes.com/sites/dereksaul/2023/03/16/first-republic-stock-crashes-but-bounces-back-as-big-banks-reportedly-closing-in-on-30-billion-rescue-plan/?sh=3af733fd7d56) (Forbes) [Banking Chiefs Are Aggressively Buying Their Own Stocks In The Wake Of Silicon Valley Bank’s Collapse](https://www.forbes.com/sites/brandonkochkodin/2023/03/14/banking-chiefs-are-aggressively-buying-their-own-stocks-in-the-wake-of-silicon-valley-banks-collapse/?sh=9278da32d4ca) (Forbes) The company, which announced Sunday it secured $70 billion liquidity extension from the Federal Reserve and JPMorgan Chase, saw its shares The CEO of Silicon Valley Bank’s parent company [sold](https://www.forbes.com/sites/brianbushard/2023/03/10/svb-financial-ceo-sold-36-million-in-stock-before-banks-collapse/?sh=3d653db34b2a) $3.6 million worth of his company’s stock two weeks before the institution’s forced closure, a move that is [reportedly](https://www.forbes.com/sites/brianbushard/2023/03/14/sec-and-doj-will-investigate-silicon-valley-banks-collapse-report-says/?sh=5bd653ac4c42) under investigation by federal prosecutors. [collapsed](https://www.forbes.com/sites/dereksaul/2023/03/16/first-republic-stock-crashes-but-bounces-back-as-big-banks-reportedly-closing-in-on-30-billion-rescue-plan/?sh=3af733fd7d56) as angst about the bank’s future mounted following the demise of three similar institutions. [according](https://www.forbes.com/sites/brandonkochkodin/2023/03/14/banking-chiefs-are-aggressively-buying-their-own-stocks-in-the-wake-of-silicon-valley-banks-collapse/?sh=9278da32d4ca) to Insider Insights data.

Leaders of top US financial agencies say move is 'welcome' amid fears California-based lender could be next to collapse.

And the financial bloodletting continued with the subsequent collapse of New York-based Signature Bank at the weekend. [Washington has been scrambling](/economy/2023/3/15/timeline-how-us-govt-scrambled-as-silicon-valley-bank-collapsed) to prevent a financial crisis following the rapid collapse of Silicon Valley Bank late last week after it experienced a traditional bank run, where depositors rushed to withdraw their funds all at once. BNY-Mellon, PNC Bank, State Street, Truist and US Bank also are each making an uninsured deposit of $1bn.

Treasury Secretary Janet Yellen told the Senate Finance Committee that the banking system is sound. But as she was testifying, the Wall Street Journal and ...

[Jeanne Whalen](https://www.washingtonpost.com/people/jeanne-whalen/), global business reporter for the The Washington Post about First Republic and other banking news of the day. But as she was testifying, the Wall Street Journal and Bloomberg News reported that America's biggest banks are mulling a rescue of First Republic Bank. Days after the government intervened in two bank failures, Treasury Secretary Janet Yellen told the Senate Finance Committee that the banking system is sound.

An 11-bank plan to save regional lender First Republic began with a brainstorming session between JPM CEO Jamie Dimon, Fed chair Jerome Powell and Treasury ...

Global shares rise as $30bn lifeline for US bank eases fears of imminent collapse and US Treasury Secretary Janet Yellen says US banking system 'is sound'

[Swiss National Bank stepped in with a 50bn Swiss franc (£44bn) loan](https://www.theguardian.com/business/2023/mar/16/credit-suisse-takes-50bn-loan-from-swiss-central-bank-after-share-price-plunge) to prop up the beleaguered lender. [Federal Reserve](https://www.theguardian.com/business/federal-reserve) in the past week. [secured a loan facility with the Swiss Central Bank](https://www.theguardian.com/business/2023/mar/16/credit-suisse-takes-50bn-loan-from-swiss-central-bank-after-share-price-plunge), intended as a guarantee of its future stability, and the panic somewhat abated – and it’s important to say that we are a long way from a full-blown crisis. [spread across the world](https://www.theguardian.com/business/2023/mar/13/silicon-valley-bank-global-banking-shares-slide-as-fallout-spreads). André Helfenstein, chief executive of the Credit Suisse’s Swiss bank, told the Swiss broadcaster SRF: But she denied that emergency action after the two large bank failures meant that there was a blanket government guarantee for all deposits. Some calm has returned to financial markets at the end of a turbulent week, but investors remain wary. SVB was supposed to be a regional player whose failure would be unlikely to have profound ramifications – but then a longstanding set of problems at Credit Suisse, a far more consequential institution, [turned into an emergency](https://www.theguardian.com/business/2023/mar/15/credit-suisse-shares-fall-low-top-investor-funding-saudi-national-bank). The FTSE 100 index in London has risen 75 points to 7,487, a gain of over 1%, as banking crisis fears eased. It said this could have resulted in “misstatements” of financial results. Ahead of the budget, Tim Sarson, UK head of tax policy at KPMG, told the FT he thought it was a “racing certainty” the changes would be made. Some optimism has returned to markets over the last 24 hours, with bank stocks stabilising on both sides of the Atlantic and two-year yields surging back.

Jamie Dimon and U.S. Treasury Secretary Janet Yellen were on a call Tuesday when Yellen floated an idea: What if the nation's largest lenders deposited ...

and Wells Fargo & Co. was reaching out to the heads of the next three largest U.S. Dimon was game — and soon the chief executive officer of JPMorgan Chase & Co.