First Republic gets $30B rescue
By Jessy Bains, Editor at LinkedIn News
Updated 7 minutes ago
Eleven banks deposited $30 billion at First Republic on Thursday afternoon, in a government-backed bid to bolster the ailing lender and boost confidence in the U.S. banking system. Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup each contributed some $5 billion, while Goldman Sachs and Morgan Stanley kicked in $2.5 billion a piece. First Republic had seen its shares crater following the collapse of Silicon Valley Bank, as investors worried over its high level of uninsured deposits. The regional bank’s stock closed 10% up after the rescue package was announced.
The banks' uninsured deposits will have to stay at First Republic for at least 120 days.
Money regional bank depositors transferred to a "Too Big To Fail Bank" is now return deposited to the original troubled bank? Are we back to where we started?
My head hurts.