The parties have negotiated, among other things, the capitalization of the bank.
16.3. 20:56 | Updated 16.3. 22:25
In trouble First Republic Bank has received a deposit of 30 billion US dollars (about 28 billion euros) from the country’s major banks.
The banks report on the deposit in their joint announcement, Reuters and AFP report. The financial authorities of the United States also inform about this in their announcement. The deposit is part of First Republic Bank’s rescue package.
A total of eleven American banks are included in the rescue package, including JP Morgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs and Morgan Stanley.
First Republic’s share was up 11 percent after the release of the announcement. Earlier in the day, the stock plunged at its worst by 36 percent before the American media reported on the support negotiations based on their sources.
The banking group says in its press release that the joint measure reflects their trust in First Republic and other banks.
Share opened on Thursday to a 31 percent decline, when the news agency Bloomberg reported earlier on Thursday that the bank is exploring the sale of its business operations and other strategic options.
First Republic Bank stock made a dramatic u-turn after the Bloomberg news was released. The stock jumped 24 percent to a plus after being down 17 percent before that. At 7:30 p.m., the stock was up by a good five percent.
First Republic Bank is an American regional bank specializing in personal banking and wealth management. Among its customers are IT rich people.
At the end of last year, the bank’s balance sheet was almost the same as that of Silicon Valley Bank.
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