11 Major Banks Team Up With $30 Billion to Bolster First Republic

<p>Eleven major banks are depositing a combined &dollar;30 billion in First Republic Bank of San Francisco in a sign of support for the struggling bank&period;<&sol;p>&NewLine;<p>Bank of America&comma; Citigroup&comma; JPMorgan Chase and Wells Fargo announced they are each making a &dollar;5 billion uninsured deposit into First Republic Bank&period; Goldman Sachs and Morgan Stanley are each making an uninsured deposit of &dollar;2&period;5 billion&comma; and BNY Mellon&comma; PNC Bank&comma; State Street&comma; Truist and U&period;S&period; Bank are each making an uninsured deposit of &dollar;1 billion&comma; for a total deposit from the eleven banks of &dollar;30 billion&period; This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes&comma; and it demonstrates their overall commitment to helping banks serve their customers and communities&period; Regional&comma; midsize and small banks are critical to the health and functioning of our financial system&period;<&sol;p>&NewLine;<p>Following the receiverships of Silicon Valley Bank and Signature Bank&comma; there were outflows of uninsured deposits at a small number of banks&period; America’s financial system is among the best in the world&comma; and America’s banks – large&comma; midsize and community banks – do an extraordinary job serving the banking needs of their unique customers and communities&period; The banking system has strong credit&comma; plenty of liquidity&comma; strong capital and strong profitability&period; Recent events did nothing to change this&period;<&sol;p>&NewLine;<p>Bigger banks have reportedly been the beneficiary of the smaller bank troubles as customers seek security by moving money out and into larger institutions&period;<&sol;p>&NewLine;<p>The actions of America’s largest banks reflect their confidence in the country’s banking system&period; Together&comma; the banks are deploying their financial strength and liquidity into the larger system&comma; where it is needed the most&period; Smaller- and medium-sized banks support their local customers and businesses&comma; create millions of jobs and help uplift communities&period; America’s larger banks stand united with all banks to support our economy and all of those around us&period;<&sol;p>&NewLine;<p>First Republic stock was up nearly 10&percnt; on Thursday but dropped more than 12&percnt; in after-hours trading&period;<&sol;p>&NewLine;

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