A group of major US banks will participate in the rescue of First Republic Bank, one of the hardest hit after the intervention in Silicon Valley Bank last week.
The US central bank (Federal Reserve Fed) announced on Thursday that it has lent about $12 billion to the country’s banks since Sunday, when it announced that it would advance what was necessary to cover customer withdrawals.
In a joint statement with the Treasury Department and the bank deposit guarantee agency (FDIC), the financial authorities had presented several measures to reassure individuals and companies, after the bankruptcy of the Californian bank Silicon Valley Bank (SVB).
Silicon Valley Bank. How the biggest banking collapse since the 2008 financial crisis unfolded
On Thursday it was announced that a group of large US banks will participate in the rescue of First Republic Bank, one of the most suffered after the intervention in Silicon Valley Bank last week.
The First Republic, based in San Francisco, saw its “classification” downgraded to the so-called “junk” category by both Fitch Ratings and S&P Global.
The amount advanced by these large banks amounts to 30 billion dollars.
“Bank of America, Citigroup, JPMorgan Chase and Wells Fargo announced Friday that they will each deposit $5 billion with First Republic Bank. Goldman Sachs and Morgan Stanley will each deposit $2.5 billion, and BNY Mellon, PNC Bank, State Street, Truist and US Bank will each deposit $1 billion,” according to a statement.
Also on Friday, Treasury Secretary Janet Yellen declared that the US financial system “is sound.” and that citizens can trust that their deposits “are you sure”.
Source: Observadora
