ISTANBUL – Eleven banks poured US$30 billion in deposits to save First Republic Bank, according to a joint statement by United States agencies yesterday.
“11 banks announced US$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, reported Anadolu.
Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo announced in a separate statement yesterday they are each making a US$5 billion uninsured deposit into First Republic Bank.
While Goldman Sachs and Morgan Stanley are each making an uninsured deposit of US$2.5 billion, BNY Mellon, PNC Bank, State Street, Truist and US Bank are each making an uninsured deposit of US$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. – Bernama, March 17, 2023
