11 Major US Banks Inject $30 Billion into First Republic
Eleven major U.S. banks, including JP Morgan Chase and Bank of America (BoA), will inject $30 billion (approximately 40 trillion won) to rescue First Republic Bank, which has been plagued by crisis rumors following the collapse of Silicon Valley Bank (SVB).
Local media such as The Wall Street Journal (WSJ) reported on the 16th (local time) citing the Treasury Department and the Federal Reserve Bank. Accordingly, JP Morgan Chase, Citi, BoA, and Wells Fargo will each invest $5 billion in First Republic Bank. Goldman Sachs and Morgan Stanley will each invest $2.5 billion, while U.S. Bancorp, Truist Financial, PNC Financial Services Group, State Street, and BNY Mellon will each invest $1 billion.
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Following the collapse of SVB, concerns surrounding First Republic have grown, leading depositors to withdraw funds from regional banks and deposit a significant portion into large banks. This support is expected to be a way to return some of these deposits. Earlier, WSJ reported in another article, citing sources, that major banks were discussing such a joint rescue plan. A plan to keep the funds deposited for at least 120 days was under consideration.
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