Big Banks To Bail Out First Republic Bank

March 17th, 2023, 10:30 AM

The nation's largest banks will combine in a joint bailout of First Republic Bank. The bailout would total more than $25 billion.

Banks participating in the potential bailout include JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., and Wells Fargo & Co. The banks are contemplating depositing $5 billion of their own funds to First Republic. Others, like Morgan Stanley and Goldman Sachs, would contribute small amounts, according to the Wall Street Journal.

The bailout could be structured so that the banks essentially give back some of the money they have received from First Republic's fleeing depositors. Silicon Valley Bank's collapse sparked significant concerns about other regional banks with large collections of uninsured deposits. First Republic's customers have pulled billions of deposits.   The deal also would solve First Republic's immediate issue of its failing stock price. First Republic's stock has plummeted for days and fell sharply Thursday morning.

After the Wall Street Journal reported the potential bailout plan, the stock reversed its Thursday loss and was recently up about 5 percent in afternoon trading.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make. 

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Blog

Big Banks To Bail Out First Republic Bank

March 17th, 2023, 10:30 AM

The nation's largest banks will combine in a joint bailout of First Republic Bank. The bailout would total more than $25 billion.

Banks participating in the potential bailout include JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., and Wells Fargo & Co. The banks are contemplating depositing $5 billion of their own funds to First Republic. Others, like Morgan Stanley and Goldman Sachs, would contribute small amounts, according to the Wall Street Journal.

The bailout could be structured so that the banks essentially give back some of the money they have received from First Republic's fleeing depositors. Silicon Valley Bank's collapse sparked significant concerns about other regional banks with large collections of uninsured deposits. First Republic's customers have pulled billions of deposits.   The deal also would solve First Republic's immediate issue of its failing stock price. First Republic's stock has plummeted for days and fell sharply Thursday morning.

After the Wall Street Journal reported the potential bailout plan, the stock reversed its Thursday loss and was recently up about 5 percent in afternoon trading.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make. 

Return to All