The federal government is reportedly orchestrating a $30 million rescue of First Republic Bank, as part of efforts to stabilize the market.
The rescue has been coordinated by the government, per a report from Bloomberg, after the regional bank saw nearly 71% of its value evaporate this week.
FIRST REPUBLIC BANK IN TALKS WITH MAJOR BANKS FOR RESCUE: REPORT
The reported rescue of the San Francisco-based bank is being made among some of the largest banks, who are looking to help keep First Republic Bank above water, at the direction of the government, amid market uncertainty. Financial institutions involved in the rescue, per the Wall Street Journal, include JPMorgan Chase, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs, among others.
Reports of the planned rescue caused First Republic Bank’s stock to shoot up after it had been bleeding value all week. The bank’s stock appears to have leveled as reaction to the reports cools, but has remained above Wednesday’s market close. Trading for the stock on Thursday began with an immediate 35% crash, after a continued bleed of value throughout the week.
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First Republic Bank had attempted to quell concerns on Sunday by announcing it had “diversified its financial position through access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase & Co,” along with saying it had $70 billion in unused liquidity. The Sunday announcement came the same day Signature Bank was seized by regulators and days after Silicon Valley Bank failed.
