US financial giants support embattled bank First Republic

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The banking crisis continues in the USA. There, the regional bank First Republic, headquartered in San Francisco (California), ran into financial difficulties. First Republic was recently downgraded by rating agencies due to liquidity and financing risks. But now he’s getting help.

Eleven banks, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley, are helping the institute with a total of $30 billion in uninsured deposits, they announced Thursday evening. Relief efforts have been coordinated by US regulators: US Treasury Secretary Janet Yellen has had a series of meetings in the past two days with senior officials from some of the nation’s largest banks to find a lifeline to the ailing California bank.

“This sign of support from a group of major banks is very welcome and demonstrates the resilience of the banking system,” said a joint statement with the U.S. Department of the Treasury, the Federal Reserve, the FDIC, and the Office of the Currency Controller. OKC).

intervention has an effect

The recovery package had the desired effect on the stock market. Both the Dow Jones Index and the S&P 500 and various bank stocks closed slightly higher than the previous day. In fact, First Republic Bank shares, some of which were suspended at the beginning of the day, closed with an increase of 10 percent. (SDA/rae)

Source :Blick