National

11 US banks pumped money to rescue 1 bank

Mar 18, 2023

Washington [US], March 18: Eleven of the largest banks in the United States will deposit a total of $30 billion in First Republic Bank (FRB), a mid-sized lender on the brink of collapse following the bankruptcy of a Valley bank. Silicon last week.
According to AFP, four banks including JPMorgan Chase, Bank of America, Citigroup and Wells Fargo will each deposit $ 5 billion into the FRB. Goldman Sachs and Morgan Stanley will each send $2.5 billion, while BNY Mellon, PNC Bank, State Street, Truist and US Bank will each send $1 billion.
According to The New York Times , the plan was born in a phone conversation between US Treasury Secretary Janet Yellen and Jamie Dimon, CEO of JPMorgan Chase. This is a move that hasn't happened in decades and is a sign of how dire the predicament of the US banking industry has become within a week. In the wake of the 2008 financial crisis, the collapse of Silicon Valley Bank (SVB) on March 10 and Signature Bank on March 12 triggered a panic that seems unlikely to subside immediately.
Shares of FRB, which have lost three-quarters of their value in recent days, have recovered following the aforementioned "lifesaver" announcement. But many other banking stocks, mainly of small and regional banks, continued to plunge.
FRB is the 14th largest US bank by assets, with $212 billion at the end of 2022.
Source: ThanhNien Newspaper

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