11 US banks come to the rescue of First Republic Bank with an injection of 30 billion
The four largest banks in the country, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, are among the entities that have deposited funds to provide liquidity to this regional bank.
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Euskaraz irakurri
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An office of the First Republic in New York. Photo: EFE
Euskaraz irakurri: AEBko 11 banketxek First Republic Bank erreskatatu dute 30,000 milioiko injekzioa eginda
11 US banksamong which are the four largest (Bank of America, Citigroup, JPMorgan Chase and Wells Fargo) have announced a total injection of 30 billion dollars (about 28.180 million euros) in the First Republic Bank to strengthen its liquidity and avoid its collapse.
According to a statement from the big four banks in the United States, this injection “reflects their confidence in the country’s banking system and helps ensure that First Republic has the liquidity to continue serving its customers.”
The injection of the big banks of the United States in the First Republic takes place after the rating agencies S&P Global Ratings and Fitch downgraded the credit rating of the First Republic to the category of ‘junk bond’ before the outflow of deposits from the entity and, even, after the US regulators promised to support the banking sector after the collapse of Silicon Valley Bank (SVB).
After knowing the rescue, Wall Street managed to close yesterday in ‘green’. The Dow Jones, its leading indicator, rose 1.17%, while the S&P 500 closed up 1.76%. For its part, the shares of the First Republic appreciated almost 10%.
Source: Eitb
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