The major banks are in talks to deposit $20 billion in the First Republic.
CNBC cited informed sources as saying a group of financial institutions are in talks to deposit nearly $20 billion in First Republic Bank, noting that the group includes Goldman Sachs, Morgan Stanley and J.P. JPMorgan Chase, Citigroup and others.
The sources said that the deal has not yet been completed, and this plan does not contemplate the acquisition of the bank, and the value of the amount deposited may change. Other reports indicated that the increase in deposits could reach $30 billion
The news comes after First Republic shares suffered a significant drop in recent days, due to the collapse of Silicon Valley Bank last Friday and Signature Bank over the weekend.
First’s shares, which closed at $115 on March 8, were trading at less than $20 on Thursday. Trading in it halted shortly after the deposit news and rose to $38 a share, up more than 20% for the day. (agencies)