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America’s Largest Banks Come Together to Inject $30 Billion into First Republic Bank

In the wake of the Silicon Valley Bank (SVB) collapse, 11 of the nation’s largest banks have come together to make a historic intervention, injecting $30 billion worth of uninsured deposits into First Republic Bank. Bank of America, Citigroup, JPMorgan Chase and Wells Fargo are each making a $5 billion deposit, while Goldman Sachs and Morgan Stanley are each making an uninsured deposit of $2.5 billion and BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank are each making an uninsured deposit of $1 billion.[0]

The unprecedented rescue plan is an effort to stabilize the lender and boost confidence in the U.S. banking system as a whole. As of the beginning of this year, First Republic had around $180 billion in deposits, and 68% of those deposits were above the $250,000 insurance limit set by the Federal Deposit Insurance Corporation.[1] Since the failures of Silicon Valley Bank and Signature Bank, nervous depositors have withdrawn an estimated $90 billion from First Republic.[1]

Major U.S. bank stocks fell on Friday, less than a day after joining forces to funnel $30 billion worth of deposits into First Republic.[2] In an effort to promote stability of First Republic and demonstrate the dependability of the American financial system in the wake of Silicon Valley Bank and Signature Bank's collapse, the Biden administration has taken action on Wall Street. This move is intended to reassure depositors and international markets.[0]

Meanwhile, the S&P 500 slumped 24.5% in the past seven trading days since March 9, a day after SVB announced it sold a portfolio of securities at a more than $1 billion loss.[3] Regulators closed the bank on March 10 due to the large number of depositors withdrawing their money.[3]

The Consumer Sentiment Index of the University of Michigan dropped to 63.4 in March, from 67 in the prior month as inflation expectations stayed high.[4]

The behavior of America’s biggest banks shows their trust in the nation's banking sector.[5] Utilizing our economic power and assets, we are working together to provide aid where it is most necessary in the broader system.[5] Small- and medium-sized banks lend their support to local customers and businesses, thereby creating millions of jobs and contributing to the betterment of communities.[6] All of America's big banks are joining forces to back up our economy and those of other countries.[6]

Credit Suisse's U.S.-traded shares were down almost 7% during premarket trading.[7]

0. “Big banks create $30 billion rescue package for First Republic” Press Herald, 16 Mar. 2023,

1. “First Republic sees ‘gob-smacking' deposit outflows; shares plummet after rescue package” Crain's New York Business, 17 Mar. 2023,

2. “Bank Stock Crash Deepens: Dow Sinks 400 Points As Top Banks Shed Another $54 Billion” Forbes, 17 Mar. 2023,

3. “From SVB’s sudden collapse to Credit Suisse’s fallout: 8 charts show turbulence in financial markets” MarketWatch, 17 Mar. 2023,

4. “Markets Dip, Signaling Pause In Rally As Focus Shifts To Next Week's Fed Decision: Analyst Says Brace For” Benzinga, 17 Mar. 2023,

5. “US banks launch $30bn rescue of First Republic to stem spiraling crisis” The Guardian, 16 Mar. 2023,

6. “Bank of America” Citigroup, 16 Mar. 2023,

7. “Dow closes nearly 400 points lower on Friday as First Republic and regional banks resume slide: Live updates” CNBC, 17 Mar. 2023,

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