Nearly a dozen of the nation’s largest banks have deposited $30 billion into First Republic Bank in an effort to stabilize the lender’s balance sheet after the firm’s share prices plunged in the aftermath of several bank failures, bank regulators announced Thursday.
“The actions of America’s largest banks reflect their confidence in the country’s banking system," the 11 banks said in a joint release Thursday. "Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most."
Bank of America, Citi, JPMorgan Chase and Wells Fargo are each funneling $5 billion in uninsured deposits to $212 billion-asset First Republic Bank, while Goldman Sachs and Morgan Stanley are contributing $2.5 billion each, the banks said.
BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank are providing deposits of $1 billion each to help prop up the San Francisco-based lender.
The joint action from the nation’s largest banks follows the collapse of Silicon Valley Bank and Signature Bank, events that have shaken the banking industry and sowed fears of contagion.
Regulators said the banks’ joint support of First Republic shows the strength of the financial services industry.
“This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system,” they said in a joint statement.