The US regional bank First Republic has also gotten into trouble as a result of the turbulence in the financial sector. It now receives billions in support from the largest American financial institutions. Eleven banks – including industry leaders JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley – are helping the institute with uninsured deposits totaling $30 billion (28 billion euros), as they announced on Thursday.
According to US media, the relief effort was coordinated by US regulators to calm the situation. The move is intended to provide First Republic with liquidity and underline confidence in the US financial system, Citigroup said in a statement. First Republic is one of a number of regional US money houses that came under pressure after the collapse of the Silicon Valley Bank on the stock market. Most recently, First Republic was downgraded by rating agencies because of liquidity and financing risks.
The Silicon Valley Bank, which specializes in financing start-ups, was closed on Friday after huge withdrawals of funds from US authorities and placed under state control. This caused great turmoil on the stock market.
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