First Republic Poised to Get $30B of Deposits in Rescue
What You Need to Know
The biggest banks, including JPMorgan, Bank of America and Citigroup, would likely contribute $5 billion of deposits each, with smaller banks kicking in smaller amounts.
The nation’s biggest banks are close to agreeing upon a plan to deposit about $30 billion with First Republic Bank in an effort orchestrated by the U.S. government to stabilize the battered California lender, according to people with knowledge of the matter.
Banks including JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Wells Fargo & Co., Morgan Stanley, U.S. Bancorp, Truist Financial Corp. and PNC Financial Services Group Inc. are part of the discussions, said the people, asking not to be identified because the talks are private.
The biggest banks, including JPMorgan, Bank of America and Citigroup, would contribute $5 billion of deposits each, with smaller banks kicking in smaller amounts, the people said.
Details of the rescue, which are still being worked out, may be announced as soon as Thursday afternoon, the people said. Drafts of an announcement are being shared at banks and across federal agencies, the people said.
Related: First Republic’s Wealth Unit Goes from Wall Street Raider to Prey in Days
Representatives of the banks, the Federal Reserve, the Federal Deposit Insurance Corp. and the Treasury Department either declined to comment or didn’t immediately respond to requests for comment. A spokesman for San Francisco-based First Republic declined to comment.
First Republic’s stock plunged as much as 36% Thursday, and has since pared all those losses, with a 10% surge before trading was paused for volatility midday.
The bank is exploring strategic options including a possible sale, Bloomberg News reported late Wednesday.
