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16 Mar 2023
US: Eleven banks deposit $30 billion into First Republic Bank
In a short statement, the Federal Reserve (Fed), the Department of the Treasury, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) announced a massive deposit of 11 banks into the Frist Republic Bank.
Full statement:
“Today, 11 banks announced $30 billion in deposits into First Republic Bank. This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system.”
Market reaction
US markets are up on Thursday with the Dow Jones up by more than 1% and the Nasdaq gaining by 2.45%. The support from banks to the Frist Republic Bank was a key factor on today’s rally. Shares of the bank reversed a 36% decline, and near the end of the session, are up by 10%.